COPENHAGEN, June 21 (Reuters) - Denmark will raise its minimum penalty for money laundering and will extend punishment to anyone who avoids reporting possible money laundering, tax evasion or financing of terrorism, the government said Wednesday.
Under a proposed law, the minimum penalty will be raised to eight years from the current six years. Bankers, lawyers and advisors will also be punished more severely under the new law.
The Danish Financial Supervisory Authority will be given the authority to remove members of a board or management team of financial institutions or to revoke a bank's license if they are found guilty, it said.
The initiative will also tighten another law, which was approved in December and comes into effect this month, under which the FSA plans tougher scrutiny of how banks assess the risk of money laundering.
The minority government announced the new law after reaching an agreement with opposition party.
The new legislation, which will be adopted in parliament in the autumn, comes after possible incidents of money laundering involving Scandinavia's two largest banks, Nordea and Danske Bank.
The two banks were investigated by authorities in Moldova and Latvia for possible money laundering between 2011 and 2014 through their overseas branches, according to the Danish newspaper Berlingske. Both banks said they were cooperating in the investigations.
Reporting by Erik Matzen; Editing by Jacob Gronholt-Pedersen, Larry King