Denmark published Executive Order No. 1160/2025 on 2 October 2025, requiring financial institutions to report foreign-linked accounts from 1 January 2026.
Denmark has published Executive Order No. 1160/2025 revising regulations for the identification and reporting of financial accounts associated with foreign nations, aligning with EU rules on administrative cooperation.
The Executive Order was released in the Official Gazette on 2 October 2025.
The regulation establishes comprehensive due diligence procedures for Reporting Financial Institutions (Indberettende finansielle institutter) to follow when classifying accounts as either Pre-existing or New accounts belonging to both individuals and entities.
Crucially, it defines various types of financial entities (e.g., Custodial Institutions, Investment Entities) and accounts, stipulates the process for identifying Reportable Persons and Controlling Persons, and outlines the specific data elements and timelines required for annual reporting to the tax authorities, with penalties established for non-compliance or fraudulent self-declarations.
Financial institutions must notify the Danish Tax Administration within eight days of becoming a reporting institution. Accounts are considered reportable from the date they are identified through due diligence procedures, and information is generally reported annually for the previous calendar year.
The order also includes anti-avoidance measures and penalties for non-compliance with reporting, registration, or due diligence requirements.
The Order takes effect on 1 January 2026 and applies to the 2026 calendar year and onwards.
