Denmark is not a member of the Euro currency zone; instead, it’s Danish crone trades at about 5.5 per US dollar. While the Norwegian kroner is typically regarded as the safe haven currency in this regions thanks to Norway’s abundance of oil wealth, the Danish kroner hasn’t been a bad currency to hold the last two years.
Consider a few facts:
1. Denmark is a member of the European Union but not in the euro zone.
I frequently suggest that you stay away from countries that are part of destructive alliances like the EU. There are exceptions when a country really stands out, but I prefer to deal with independent countries in charge of their own affairs.
Denmark, of course, isn’t some backwater in far eastern Europe. No one is claiming that Vladimir Putin will march into Copenhagen any time soon. Denmark is as European as you can get, and it has full access to the European markets without some of the inconveniences of sharing a currency with places like Greece.
2. Denmark banks offer lower fees and account minimums with strict ethics standards.
Bank secrecy isn’t a huge thing here in Denmark, although there is enough of it for the global watchdogs to claim Denmark must make “major progress” to become a transparent financial center.
However, the offshore sector in Denmark is growing. Jyske Bank is based here, and has a sizable offshore bank presence in places like Gibraltar, as well. For a fraction of the cost of opening an account in Switzerland, you can open an account in Denmark.
Private banking services are available here for anyone with a few hundred thousand dollars. That’s not exactly a high bar, putting Denmark on par with mid-level private banking services in a place like Singapore.
Denmark is not the victim of any such witch hunts. And for Americans, Danish banks aren’t on the IRS radar. That doesn’t mean you shouldn’t report a bank account held in Denmark, but it means that your bank there won’t subject you to the nonsense that Swiss bank account holders have had to go through.
Switzerland, of course, has been under fire from the IRS for years. The oldest bank in Switzerland closed as a result of aggressive targeting by the IRS and the US government. Larger Swiss banks were not immune from huge blows, as well, and many have paid huge fines to settle tax evasion charges with Uncle Sam.
For that reason, opening an offshore Swiss bank account is nearly impossible these days. One or two smaller banks will let you in with around $750,000, and others require millions. Denmark banks do not have such stringent requirements precisely because they haven’t been targeted as evil tax evasion conspirators.
Denmark’s bank deposit insurance program covers deposits of up to 750,000 Danish kroner (about US$138,000), and its position outside of the European Union’s “mandatory” 100,000 euro deposit insurance – which we know from Cyprus means nothing – is a plus in my book.
Denmark’s offshore banking sector is tiny by most standards, accounting for well under 1% of all offshore deposits. Copenhagen isn’t exactly Zurich if you’re comparing this place to the Swiss bank account. However, many of the fundamentals we look for in an offshore banking hub can be found here in Denmark.
There are some other potential benefits to placing some of your finances in Denmark which I’ll be covering later. Of course, choosing the best place to open an offshore bank account involves a number of factors including the stability of the jurisdiction and the local political climate.However, amidst a sea of weak banking jurisdictions in Europe, Denmark doesn’t look all that bad.
Denmark Offshore Bank Account
The information below provides details about the Denmark banking system, and details on opening a Denmark offshore bank account. You will find details on the laws and regulations that govern the banking system, as well as a list of local and international banks that operate in Denmark.
To open an Denmark offshore bank account, please select from the account types listed below, and complete the online contact form:
Open a Personal Bank Account
Open a Corporate Bank Account
Open an Investment Bank Account
To learn more regarding the banking system of your choice, or If you have any additional questions and require further information, Contact ElegantInvest today.
Denmark Banking System
Since 1982, the Danish money and capital markets have under-gone a process of internationalization, and today they fulfill all of the EU requirements regarding the free movement of capital and cross-border trade in financial services. One of the main features of the Danish financial market is a very large bond market, relative to the country’s size, stemming from an unusually widespread issuance of mortgage credit bonds.
Danish banks have become increasingly concentrated over the past decades. The number of banks reached its peak in the 1950s, with about 160 commercial banks and 475 savings banks. Since the mid-1980s, their number has fallen sharply; in 1989, six of the largest banks merged into two large commercial banks, Danske Bank and Unibank. The most recent major mergers were Danske Bank’s merger with BG Bank, Denmark’s third-largest bank, and Unibank’s merger with the Finnish-Swedish bank Merita Nordbanken to form Nordea.
Both took place in 2001.
At the end of 2002, Denmark had 186 banks. At that time, the five largest banks collectively had a market share of 81 per cent, as measured by lending volume.
The banking sector in Denmark runs on state-of-the-art technology, as is evident in the services it offers both in the domestic market and abroad. Denmark has always been dependent on foreign trade, and the business policies of its banks have therefore been internationally oriented.
Four Danish banks have foreign branches, and a number of foreign banks either are directly represented in Denmark or have announced plans for cross-border services here.
Banking business is governed by the Danish Banking Act, and banks operate under the supervision of the Danish Financial Supervisory Authority, which is a directorate under the Ministry of Business and Industry.
Denmark’s Nationalbank is an autonomous institution whose objective is to maintain a secure monetary system and to facilitate and control the circulation of money and the lending activities in the country. The central bank is responsible for Danish monetary policy, for the tactical management of government debt and currency reserves, and for issuing notes and coins.
Currently Denmark’s banking system is open to foreign competition and largely independent of government. The same rules apply to commercial and savings banks, and banks may provide services in a wide variety of areas including mortgage financing, stock trading, leasing, factoring, investment, real estate, and insurance. As of the end of 2004, there were about 160 banks, in Denmark, with the five largest accounting for 82 percent of market turnover. Danske Bank is the largest bank in Denmark and a leading player in the Scandinavian financial markets. Nordea is the second largest bank in Denmark with a nationwide network of 344 branches. The assets of the two largest banks, Danske Bank and Nordea Danmark, amounted to approximately USD 259 billion in 2003 corresponding to approximately 73% of the total assets in the Danish banking sector. The major Danish banks are rated by international agencies and the creditworthiness is very high by international standards.
Some of the major banks operating in Denmark:
– ABN AMRO CAPITAL
– Barclays Capital
– Danske Bank
– Deutsche Bank
– Fionia Bank
– HSH Nordbank
– Jyske Bank
– Nordea Bank
– Nykredit Bank
– The Royal Bank of Scotland
– Spar Nord Bank