Lucinity’s CEO Authors Børsen Op-Ed on Denmark’s AML Investigation Bottleneck

Daniel Pálmason, CEO of Lucinity, authored an op-ed in Dagbladet Børsen, Denmark’s largest business newspaper.

In the Danish article, titled “Money laundering alarms end in systemic chaos,” Pálmason examines systemic pressures within Denmark’s anti-money laundering framework. He focuses on the gap between detection systems that generate millions of alerts and investigation teams that lack the capacity and documentation structure to process them at scale.

The article starts with the scale of the issue. Danish banks generate approximately 27,000 money laundering alerts per working day and around 70,000 cases are formally reported to the Danish Financial Supervisory Authority each year. While this shows that detection systems operate at scale, investigations remain largely manual, leading to backlogs and weaker documentation.

“When large institutions receive significant money laundering fines, the violations are usually not about lack of detection but about inadequate investigation,” says Pálmason. 

He argues that recent sanctions reflect such investigative failures, not detection failures. Banks often identify high-risk customers yet lack the documented basis to justify retaining or rejecting them. This creates regulatory limbo, where risk is known but not defensibly managed. At the same time, supervisors increasingly assess the quality and auditability of investigations years later, rather than the volume of alerts generated. 

As the solution, Pálmason calls for structural separation between detection and investigation, dedicated investigation infrastructure, and risk-based protocols that define investigative depth and documentation standards.

Lucinity’s operating model exemplifies this structural distinction. Through its Agentic FinCrime Services, Lucinity runs AML and KYC triage and investigations under SLA inside client systems. Luci prepares cases by gathering evidence and drafting structured documentation, while human analysts finalize investigations. Escalations and regulatory decisions remain fully under client control.

Read the full article on Børsen to learn more: 
https://borsen.dk/nyheder/opinion/hvidvaskalarmer-ender-i-et-systemisk-kaos?b_source=daniel&b_medium=row_1&b_campaign=list_2