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Letter confirms: Foreign employees entitled to Danish bank account

Foreign employees with their papers in order are entitled to a Danish bank account, Finance Denmark confirms in a letter to its members. This will help Danish companies like Accenture, who need to pay salaries to foreign employees on short working visits in Denmark.
Finance Denmark has sent out a letter to financial institutions notifying them that they are obliged to create accounts for foreign nationals that are entitled to work in Denmark. Photo: Colourbox

Publiceret: 21.02.2018
Af Peter G. H. Madsen mail

Since the summer of 2017, global consulting firmAccenture has struggled with the administrative difficulties resulting from the Danish parliament’s decision to tighten the rules for use of foreign employees.

Among other things, the tightened rules stipulated that foreign employees from non-EU countries must have salaries paid into a Danish bank account - even for short stays in Denmark.
Meanwhile, tightened legislation to prevent money laundering has made banks more cautious about setting up accounts for foreign employees.

Now, however, things are looking brighter.

The requirement that salaries be paid into a Danish bank account remains unchanged, but Finance Denmark - a trade organisation for Danish banks - has given companies with foreign employees a helping hand. The organisation has sent out a letter to financial institutions notifying them that they are obliged to create accounts for foreign nationals that are entitled to work in Denmark.

“We sent out the letter upon the request of the Confederation of Danish Industry and the Danish Agency for International Recruitment and Integration (SIRI), who brought to our attention the fact that a number of Danish companies find that their international employees from non-EU countries have difficulty setting up Danish bank accounts for payment of their salary before they have received their CPR number/residency permit,” explains Kenneth Joensen, Legal Executive Director at Finance Denmark.

See also: Many foreign workers come to Denmark

Help from SIRI

The letter from Finance Denmark also informs banks that SIRI can provide help if they are unsure about a specific residency permit.

“In the letter to the banks, we have included information from SIRI that can help them understand the rules. We hope that the included material can make it easier and less worrisome for banks to open bank accounts in compliance with the money laundering rules for this group of foreign employees. Meanwhile, it is important that employees bring the information banks need so that they do not end up going to the bank in vain. In our experience, this can also be part of the problem in the specific instances,” says Kenneth Joensen.
Philip Wiig, Country Managing Director for Denmark at Accenture welcomes the news.

“The rules requiring that foreign employees on short visits have their salary paid to a Danish account will still be an administrative burden. But it is a big relief that it has been made clear to banks that they are entitled to an account when they are permitted to work here,” says Philip Wiig.

However, he still hopes that the parliament will reexamine the rules and find a solution that is less difficult for both companies and the highly-specialised foreign nationals that Accenture brings to Denmark for short periods.

“We are increasingly availing ourselves of some of the world’s most talented people, who come to Denmark for a short period to help us provide consulting services to Danish and international companies. It is therefore very important for us that getting them here is as straightforward as possible in terms of administration,” says Philip Wiig.

See also: Acclaimed entrepreneur: Denmark needs better immigration services

Help us get rid of cumbersome rules

Linda Duncan Wendelboe, Head of DI Global Talent, agrees.

“We really appreciate Finance Denmark’s initiative and hope that the letter will help ease the burdens associated with setting up bank accounts for foreign employees. Ideally, however, we would like the requirement of a Danish bank account to be lifted completely.
Through the Danish Business Forum for Better Regulation, the Confederation of Danish Industry has suggested that the Pay Limit track under the Fast-Track scheme be exempted from the requirement of a Danish bank account, so that the scheme could be used for short-term stays.

“Ultimately, we risk that these cumbersome rules will force companies to move departments and staff functions abroad, since the ability to bring employees in and out of a given country for projects and meetings is a priority, presently and in the future,” says Linda Duncan Wendelboe.

Ultimately, we risk that these cumbersome rules will force companies to move departments and staff functions abroad.
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PUBLISHED: 2/21/2018 LAST MODIFIED: 2/21/2018