Denmark’s FSA Fines Saxo Bank DKK 313 Million Over AML Control Failures

Denmark’s Financial Supervisory Authority (FSA) has imposed an administrative fine of DKK 313 million (approximately $49.7 million) on Saxo Bank for anti-money laundering (AML) compliance failures linked to its institutional and white-label operations.

The regulator said the breaches occurred between 2021 and 2023. According to the FSA, the penalty relates to the bank’s failure to obtain sufficient information about the purpose and intended nature of certain customer relationships, as well as shortcomings in ongoing monitoring involving white-label clients.

Under Saxo Bank’s white-label model, partner institutions use the bank’s trading infrastructure to provide market access to their own end clients.

The FSA stated that it did not identify specific instances or indications of money laundering. However, it concluded that systemic deficiencies in risk controls warranted a significant regulatory response. The fine is framed as a reaction to control and risk management failures rather than evidence of criminal conduct.

The authority noted that an initial penalty calculation was higher. The amount was reduced after Saxo Bank cooperated with the investigation and took steps to address compliance gaps.

Separately, Hong Kong’s securities regulator recently reprimanded and fined Saxo Bank’s local subsidiary HK$4 million (around $514,000) for offering 32 crypto products intended for professional investors to retail clients. The action followed the closure of Saxo’s Hong Kong office and the subsequent wind-down of operations in the jurisdiction.

Saxo Bank said it has accepted the Danish FSA’s decision and will not challenge the fine. Chief Executive and Founder Kim Fournais said the bank has implemented strategic and operational initiatives since an inspection in May 2023 and increased investment in AML and counter-terrorist financing controls, including improvements to processes, procedures, and reporting.

Fournais added that compliance with applicable laws and regulations across the markets where Saxo operates remains a top priority for the bank.