Politically exposed person
All banks and financial institutions are by law required to obtain additional information regarding individuals who have, or have had a high profile political role or has been entrusted with a prominent public function. This is to ensure that we know our customers and that the services we provide are used the way they are intended.
What defines a Politically Exposed Person (PEP)?
A PEP is a person who serves or has served in the position or function of:
- head of State, head of government, minister or assistant minister;
- member of national assembly;
- member of a governing body of a political party;
- member of a high-level judicial body, the decisions of which are not subject to further appeal, except in exceptional circumstances;
- member of the board of an auditor general's office, a court of auditors or a central bank;
- ambassador, chargé d’affaires or high-ranking officer of the armed forces;
- member of an administrative, management or supervisory body of a State-owned enterprise;
- chief executive officer, member of the board or other person in the senior management of an international organisation.
You are also considered a politically exposed person if you are a close family member to a politically exposed person. If you are a "known close associate" to a politically exposed person, this shall also be recorded.
You are considered to be a politically exposed person for up to 12 months after leaving a position or function.
Why do we require information on politically exposed persons?
Like all other financial institutions offering banking or insurance, Danske Bank is required to follow the "Know Your Customer Principle". This principle is intended to ensure that we have a solid understanding of our clients and to ensure that the services we supply are used for their intended purpose.
The Anti-Money Laundering Act commit us to disclose if persons who can act on behalf of your company, persons with right of disposal over an account or a deposit, or persons who are the beneficial owners, are or have been politically exposed persons (PEPs). We also have to disclose close family members or known close associates of politically exposed persons.
It is of great importance that the bank receive the correct information. We therefore ask that a representative from your company investigates whether any of your employees with roles as described above, can be defined as PEPs. Further that this information is collected and submitted by this person on behalf of your company, also if you have no employees in the PEP-category.
Read more about our processing of personal data in the bank's Privacy Notice
What are the different defintions?
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Whenever the customer is not a natural person, a foundation or a foreign trust, the following are considered to be the beneficial owners.
A natural person who, alone or jointly with close family members:
a) holds more than 25 percent of the ownership interests in the legal entity or association;
b) control, because of a shareholding, unit holding or membership, more than 25 percent of the total number of votes in the legal entity or association;
c) have the right to appoint or remove more than half the directors or equivalent of the legal entity or association;
d) can, because of an agreement with owners, members, or the legal entity or association, or articles of association or similar, exercise control in accordance with letter a), b) or c); e) otherwise exercise control over the legal entity or association.
If one or more natural persons, through control over one or more legal entities, foundations, foreign legal arrangements or other associations, exercise control over another legal entity or association in a manner specified in paragraph 1, such natural person or persons shall be held to exercise control over the latter legal entity or association as well.
If the company’s ownership interests are listed on a regulated market in an EEA state or is subject to an obligation of information equivalent to that applicable to listing on a regulated market in an EEA state, beneficial owners shall not be identified.
If your company is a foundation, thrust or have similar legal structure we recommend you to contact the bank for guidance in identifying beneficial ownership.
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"Close family members" are defined a parent, spouse, registered partner, co-habitant or child, as well as a child's spouse, registered partner or co-habitant.
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A "known close associate" is understood to be a natural person who is known to:
- have joint beneficial ownership of a legal entity, association or foreign legal arrangement with a politically exposed person;
- have close business relations with a politically exposed person;
- have sole beneficial ownership of a legal entity, association or foreign legal arrangement which has been set up for the de facto benefit of a politically exposed person.
What do I do if I do not have consent to share the information?
Due to privacy concerns, you must ensure that you have gotten consent from the individuals defined as PEPs to share the information about them with Danske Bank before continuing the process.
If you have not gotten consent, please contact the bank and one of our advisors will help you with the rest of the process.
What happens if you do not register the information?
If you have not registered any information about politically exposed persons within 30 days after the received request is dated, we are obliged to block your accounts until we have received the information we need. We apologize for the inconvenience.
Danske Bank need you to register if
- persons who can act on behalf of your company...
- persons with right of disposal over an account or a deposit...
- or persons who are the beneficial owners...
...are politically exposed persons. We also have to disclose close family members or known close associates of politically exposed persons.
Note: You must also answer, even if you do not have employees who are politically exposed.
