According to the Act on Credit Institutions and the Act on Detecting and Preventing Money Laundering and Terrorist Financing, the bank must identify its customers, authenticate the customers’ identity with a document accepted as a proof of identity and store the information of that proof of identity in its archive. The bank must also know what kind of business the customer has with the bank and what kind of services the customer wishes to use. The bank is obliged to monitor the customer’s business and use of the service so that the bank can identify any unusual or deviating transactions and react to them. The so-called due diligence information collected by the bank includes, in addition to the basic information, information about financial standing, tax liability and political exposure. Danske Bank collects due diligence data when the customer relationship is started and regularly after that. The bank has a statutory obligation to assist in the prevention, exposure and investigation of criminal activity and having possible crimes investigated.
Knowing the customer
Building trust
Banking is based on mutual trust, which is created with personalised service that takes the customer’s needs into consideration. When we know your needs, we can offer the advice and solutions that best match your situation in life.
Statutory obligations
It is our statutory obligation to identify and know our customers. We must verify your identity using reliable identification documents and check what banking services you need and use.
In addition to your financial position, we must ensure the origin of the funds arriving on your accounts and how you plan to use your account. We must determine if you are a politically exposed person. We will also ask what country you are liable for taxation in because the international agreements that Finland is a part of require so (Act on Taxation Procedures 18.12.1995/1558).
Prevention of financial crime
With these statutory measures, we strive to prevent financial crime, money laundering and the funding of terrorism. We have a statutory obligation to assist in the prevention, exposure and investigation of criminal activity and having possible crimes investigated. By knowing our customers properly we can be the most reliable financial partner for you.
Confidentiality of your data
We will ask certain questions when you become our customer, and also regularly during our relationship. All information you provide is handled confidentially and in accordance with legislation pertaining to collecting and storing personal data. The information collected from you in order to fulfil our statutory obligation regarding due diligence is not used for any other purpose than this. Your information is not, for example, used for marketing.
Be alert!
Remember that Danske Bank will never request your bank identifier or credit card information by electronic mail or telephone. Danske Bank will never request your card number, validity period or PIN code on its website or in eBanking. Because of security reasons, we do not use electronic mail for sending or receiving confidential information.
Make sure that whatever device you use, be it a computer, tablet or a mobile device, is protected, its antivirus program is up-to-date and the firewall is working.
Store and use your bank identifiers carefully. Do not disclose them to outsiders.
Verifying your identity
The identity of the customer is verified with a proof of identity issued by an authority, such as a passport or personal identity card. The document must be valid. In certain cases, the identity can be verified electronically using a strong authentication method, Finnish online bank credentials in practice.
According to the Act on Detecting and Preventing Money Laundering and Terrorist Financing, the bank must keep a copy of or sufficient information about the document used for identification.
If you are acting on behalf or in the interest of another person, the bank also needs information about the identity of this other person.
Approved proofs of identity at branch offices
Documents issued by a Finnish authority
- Personal identity card
- National passport (not an alien’s passport)
Travel documents issued by a foreign authority
- National passport (not an alien’s passport)
- Personal identity card issued by an authority within the EU or Schengen area (with a chip, contains a hologram or optical security measures)
Knowing the customer
The bank must have sufficient information about its customers’ financial activity, the extent of the activity and grounds for using the services of the bank. The information must also be kept up-to-date during the customer relationship and must be stored appropriately.
The bank is obliged to inquire about the financial status, tax liability and political exposure of its customers. If necessary, the customer is requested to provide additional information about the origin and purpose of the funds arriving on the account and documents that can be used to substantiate the information.
By requesting the information and a more detailed account, the bank can understand the grounds for the regular banking transactions of its customers and detect and investigate unusual or deviating activity. Thus, the bank can provide safe banking for its customers.
When granting credit, the bank as a creditor must assess whether the consumer can fulfil the obligations of the credit agreement. When providing investment services, the bank must assess the appropriateness or suitability of the product for the customer.
International agreements regarding the exchange of information for taxation purposes
International agreements regarding the automatic exchange of information for taxation purposes affect the information that the bank must request from its customers. In accordance with its international commitments, Finland will automatically provide countries participating in the exchange of information for taxation purposes and other regulation with taxation-related information, and will also receive it from other countries.
Finland has a so-called FATCA agreement with the United States for the automatic exchange of information, in addition to which Finland is bound by the common reporting standard CRS of the OECD countries and by the European Union directive amendment DAC2. The purpose of the exchange of information is to improve the efficiency of tax supervision and make it more difficult to avoid taxes.
In accordance with the acts and international treaties approved by the parliament, banks and other financial institutions must identify the tax residence of their customers and provide the Finnish tax authority with information about the assets and income of its customers. A customer, in turn, must provide the bank with the necessary additional information in order to determine their tax residence. The tax administration will send this information to other countries with which it has an agreement or other obligation and, correspondingly, will receive information affecting taxation from other countries regarding the foreign assets and income of persons residing in Finland.
We ask that you complete the declaration about your tax liability and provide us with your foreign tax identification number, if any, when you become our customer or your country of residence or taxation changes. If necessary, we will provide help with filling in the declaration. Do note, however, that Danske Bank cannot provide tax advice. If, for example, you have questions about how to determine your tax residence, please contact a tax specialist.
Declaration of tax liability
If necessary, fill in a declaration of your tax liability. Remember to sign the document after printing it. You can send the completed, signed document by scanning it as an attachment to an eBanking message or personally deliver it to a branch office.
Questions and answers
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Why does the bank ask personal questions?
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What is my information used for?
According to the Act on Credit Institutions and the Act on Detecting and Preventing Money Laundering and Terrorist Financing, the bank must identify its customers, authenticate the customers’ identity with a document accepted as a proof of identity and store the information of that proof of identity in its archive. The bank must also know what kind of business the customer has with the bank and what kind of services the customer wishes to use. It is the bank’s obligation to monitor the customer’s business and use of the service so that the bank can identify any unusual or deviating transactions and react to them. Your information collected in order to fulfil our statutory obligation regarding due diligence is not used for any other purpose than this. The information will not be used for marketing, for example. The bank has a statutory obligation to assist in the prevention, exposure and investigation of criminal activity and having possible crimes investigated.
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How is my information stored?
The customer information is stored and processed at Danske Bank in adherence to the statutory obligations, official instructions and generally accepted practice related to banking secrecy and data protection.
Pursuant to the Personal Data Act, the customer has the right to know what information is stored about the customer in the bank’s customer register. The query must be filed at a branch office or via eBanking. The person making the query must prove their identity. The bank will respond to the customer by letter.
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Why am I asked information even though I have already been a customer for a long time?
Danske Bank collects due diligence data when the customer relationship is started and regularly after that. We always ask for information from our new customers. If you have become our customer before the entry into force of the current law or if your financial standing or use of banking services has changed, we may need more information than we have or we may need to update the information.
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What legislation are your questions based on?
The bank asks information related to due diligence based on obligations derived from legislation and official instructions.
- Act on Credit Institutions (610/2014)
- Act on Detecting and Preventing Money Laundering and Terrorist Financing (444/2017)
- Investment Services Act (747/2012)
- Act on Common Funds (48/1999)
- Act on the Book-Entry Securities System and Clearing (749/2012)
- Act on the Managers of Alternative Funds (162/2014)
- Act on Taxation Procedures (1558/18.12.1995)
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May I refuse to answer?
The obligation to respond to the questions comes directly from the legislation related to due diligence, which obliges all providers of financial services. The purpose of the legislation related to knowing the customer is to prevent money laundering, funding of terrorism and financial crime. The underlying concepts are pan-European and international regulations on money-laundering and preventing terrorism funding. This is the reason why we need responses from all of our customers.
We offer you the possibility to provide the information the way that best suits you, either online, by telephone or by mail.
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How should I provide the information?
When you become our customer, we ask you for the information required by legislation during the meeting or online registration as a customer. If you already are our customer and we ask you to update your information, you can supply the requested information and documents via eBanking or the mobile application using a secured connection, by telephone or by mail. All information you provide is handled confidentially and in accordance with legislation pertaining to collecting and storing personal data.
Remember that when we contact you, we will never request your bank identifier or credit card information by electronic mail or telephone. Neither will Danske Bank ever request your card number, validity period or PIN code on its website or in eBanking. Because of security reasons, we do not use electronic mail for sending or receiving confidential information.
Additional information
To learn more about due diligence and international exchange of information, visit the Financial Supervisory Authority and Tax Administration websites:
