Document background
The Funds Flow Memorandum is an essential document in complex financial transactions under Danish law, typically used in project finance, corporate lending, acquisitions, and other significant financial arrangements. It provides a detailed roadmap for the movement of funds between various parties, ensuring compliance with Danish financial regulations, including the Financial Business Act (Lov om finansiel virksomhed) and Money Laundering Act (Hvidvaskloven). The document is particularly crucial when multiple parties, accounts, and jurisdictions are involved, as it helps prevent errors, ensures regulatory compliance, and creates a clear audit trail. The Funds Flow Memorandum includes specific payment instructions, timing requirements, conditions precedent, and verification procedures, serving as the primary reference document for all parties involved in executing the financial aspects of the transaction.
