Financial Crime World

Iceland’s AML/KYC Regulations: What You Need to Know

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Iceland has implemented anti-money laundering (AML) and know-your-customer (KYC) regulations to prevent financial crimes and ensure the integrity of its financial system. As a leading provider of document verification services, Shufti Pro is dedicated to helping businesses comply with these regulations.

Document Verification

Shufti Pro utilizes its specialized Document Verification service to verify the authenticity of documents submitted by customers. The service checks for various security features such as:

  • Holograms
  • Tapered/crumpled edges
  • Doctored elements
  • Form inconsistencies
  • Document expiration
  • MRZ (Machine Readable Zone)
  • Reflected colors
  • Microprinting

Verification Process

When verifying the identity of legal persons or partnerships, Shufti Pro extracts information from the commercial register or a comparable official register through its know-your-business (KYB) process.

Required Documents

The following documents are considered proof of identity in Iceland:

  • Passport
  • Driving license
  • Other valid photo ID

For address verification, the following documents are accepted:

  • Utility bills issued no more than three months ago that show the end-user’s address and name
  • Bank statement issued no more than three months ago that shows the end-user’s address and name

Timing of Verification

Identity verification is not a one-time process. It may be required in multiple instances, depending on regulations and business requirements.

Politically Exposed Persons (PEPs) and Enhanced Due Diligence (EDD) Measures

As per Iceland’s AML/KYC regulations, businesses are required to determine if their customers are PEPs or exhibit a higher risk profile. Shufti Pro provides an AML Screening service that screens an individual’s selected ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.

Reliance on External Services

Iceland’s regulations allow businesses to seek the services of third-party providers for due diligence. However, businesses remain liable for maintaining all compliance and fulfilling AML/KYC obligations.

Record Retention

As per Iceland’s Act, businesses are required to retain data for no less than five years as part of their AML/KYC obligations for due diligence.

By understanding these regulations and requirements, businesses in Iceland can ensure compliance with AML/KYC rules and protect their reputation and customers. Shufti Pro is committed to helping businesses navigate the complex world of AML/KYC compliance.