The AML Act, also known as the Anti-Money Laundering Act, was introduced in Denmark and extended to Danish associations, whether they are small motorcycle clubs, chess clubs, or similar groups.

The law was enacted by the Danish government and Parliament as part of the national effort to meet international obligations and protect the Danish financial system. Although associations are typically not directly involved in financial transactions like banks or finance companies, they were still affected by the law.

The AML Act began to take shape in Denmark during the 1990s and early 2000s in response to international agreements and recommendations to combat financial crimes such as money laundering and terrorism financing. It has since undergone continuous updates to meet changes in international standards and economic conditions.

The law required Danish associations to follow certain AML regulations, especially when receiving large donations or conducting transactions through bank accounts. This was done to prevent the misuse of association facilities for illegal activities.

The purpose of the AML Act is to protect the Danish financial system from misuse and ensure that financial activities are legitimate and transparent. Although Danish associations are typically not at the forefront of financial transactions, they can still be part of a larger ecosystem. The AML Act helps prevent Danish associations from unintentionally becoming involved in financial crime and strengthens the integrity of Denmark's economic structure.

In the broader context, the AML legislation serves as a tool to maintain security and credibility in Denmark’s financial sector and protect society as a whole from financial crime and terrorism financing. For Danish associations, this means increased awareness of and compliance with AML regulations to ensure they contribute to this collective effort.