DENMARK Law and Practice Contributed by: Thomas Maaberg Hansen and Peter Sand, Gorrissen Federspiel
4.3 Screening and Due Diligence Requirements
Corporate Criminal Liability and Voluntary Disclosure Legal persons may also incur criminal liability in accordance with the general rules on corporate criminal liability set out in Chapter 5 of the Danish Criminal Code. As regards civil remedies, the general Danish rules on civil liability and procedure apply and – depending on the circumstances – a breach may give rise to a claim for damages. The Danish National Police is responsible for administering export licences for weapons and military equipment, while enforce - ment of criminal offences is handled by the police and the prosecution authorities. There is no formal voluntary disclosure regime. How - ever, voluntary self-disclosure may be considered by the authorities when assessing potential penalties and may support some degree of leniency, depending on the circumstances of the case. 4. Compliance, Sanctions and Embargoes 4.1 Sanctions Legislation and Regulatory Framework The sanctions regime in Denmark is based on UN and EU sanctions regulations, which contain coun - try-specific and sector-specific sanctions as well as asset freezes, which also apply to the defence sector. The Danish Enabling Act provides the legal basis for enforcing these regulations in Denmark. Denmark has not adopted separate national sanctions legislation. Various Danish authorities handle administration of the sanctions regime in Denmark. 4.2 Arms Embargoes Arms embargoes imposed by the UN and the EU are given effect primarily through directly applicable EU regulations, which prohibit the sale, supply, transfer and export of arms and related material to embargoed destinations, as well as the provision of related tech - nical assistance, brokering services, and financing. Certain EU sanctions regulations allow limited exemp - tions, such as for non-lethal equipment intended for humanitarian use.
EU and UN sanctions must be complied with by all persons and entities within their scope, regardless of sector. This includes prohibitions on making funds or economic resources available, directly or indirectly, to designated persons or entities. Sanctions screen - ing is therefore an essential compliance measure, particularly in the defence sector and in connection with transactions involving higher-risk jurisdictions or counterparties. Screening standards and owner - ship and control assessments follow applicable EU requirements and relevant EU guidance. 4.4 Licences, Derogations and Exceptions EU sanctions regulations provide for specific exemp - tions or derogations from otherwise prohibited activi - ties and specify which licences must be obtained for activities that would otherwise be prohibited. Licences must be obtained from the relevant Danish authorities and the applicable licensing requirements will depend on the area and sector to which the prohibitions relate. The Danish Business Authority handles licences relat - ing to, for example, asset freezes. Under current prac - tice, the Danish Business Authority requires that an application for a licence under a sanctions regime be submitted as a free-text application, which is not sub - ject to any specific requirements as to form. 4.5 Extraterritorial Sanctions and Secondary Sanctions Risk Third-country sanctions regimes, such as US sanc - tions, do not form part of Danish law. However, US sanctions in particular may have broad extraterritorial reach – with the result that Danish persons and enti - ties may face exposure where their activities involve, for example, US-origin goods. In this context, the EU Blocking Statute (Council Regulation No 2271/96, as amended) is of particular relevance, as it is intended to shield EU persons and entities from the effects of certain specified US sanctions with extraterritorial application. 4.6 Sanctions Compliance Programmes Denmark has not issued specific national guidance on the content of a sanctions compliance programme. At EU level, the Commission Recommendation (EU)
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