Danish offshore accounts target of latest crackdown

The Danish government is looking to hold bank executives accountable for illegal use of offshore accounts, according to a recent report by Bloomberg. The push is the result of Danish lenders becoming a hub for money launders.

The increased use of Danish banks for money laundering purposes has led Danish banks to become the center of criminal investigations. Although the banks state they are cooperating fully with these investigations, Danish authorities are pushing for more — they want legislatures to pass laws to allow for additional accountability.

How serious is the problem? A report by Denmark’s Financial Action Task Force found “extensive shortcomings” regarding compliance with global money laundering regulations. These shortcomings included a failure to coordinate enforcement efforts and “weak implementation of anti-laundering measures by banks.”

This report has provided additional support for the push for increased accountability measures. Danish Business Minister Rasmus Jarlov states the country has “considerable latitude” when it comes to determine fines and aims to make Denmark’s laws some of the “toughest in Europe.”

What does this mean for United States taxpayers that hold offshore accounts? It is important to ensure all foreign assets are in line with applicable tax obligations. A failure to properly report these assets to the Internal Revenue Service (IRS) can result in serious penalties including harsh monetary fees and potential imprisonment.

Additional accountability efforts abroad like those called for in the piece noted above could increase the chances foreign institutions will report the presence of assets to the IRS. This could lead to an investigation if the government is not already aware you hold this asset. You can reduce the risk of an investigation by proactively reporting these assets. Contact an attorney to discuss your options.

No Comments

Leave a comment
Comment Information
  • ABA | American Bar Association
  • AV Preeminent | Peer Rated for Highest level of Professional Excellence | 2018
  • Virginia State Bar | 1938
  • Super lawyer | 2018
  • DC Bar
  • American Bar Academy of Attorney - CPAs | The power of the dual view
Email Our Team

Contact Us to Get Started Today

Located in the Washington, D.C area, we serve clients in the District of Columbia, Maryland and Northern Virginia, as well as across the country and overseas. For a free initial consultation, call 202-381-1261 or complete our brief online form.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Six Convenient Office Locations in and around the DC Metropolitan Area

Washington, D.C.
1629 K Street NW, Suite 300
Washington, D.C. 20006

Phone: 202-618-1873
Fax: 888-235-8405
Map & Directions

Columbia Office
10440 Little Patuxent Parkway, Suite 300
Columbia, MD 21044

Phone: 410-497-5947
Fax: 888-235-8405
Map & Directions

Annapolis Office
888 Bestgate Road
Suite 400
Annapolis, MD 21401

Phone: 410-497-5947
Fax: 888-235-8405
Map & Directions

Fairfax Office
8280 Willow Oaks Corporate Drive
Suite 600
Fairfax, VA 22031

Phone: 703-621-7169
Fax: 888-235-8405
Map & Directions

Rockville Office
199 E. Montgomery Avenue
Suite 100
Rockville, MD 20850

Phone: 240-599-5009
Fax: 888-235-8405
Map & Directions

Baltimore Office
400 East Pratt Street
8th Floor
Baltimore, MD 21202

Phone: 443-743-3381
Fax: 888-235-8405
Map & Directions