Iceland’s Financial Underbelly: Uncovering the Types of Financial Crimes that Threaten the Country’s Economy
Iceland is renowned for its breathtaking landscapes and thriving economy. However, it is not immune to the scourge of financial crimes. Two significant threats to the nation’s financial system are money laundering and terrorist financing. In this article, we will delve into the types of financial crimes that threaten Iceland’s economy.
Money Laundering: A Devastating Impact on Iceland’s Financial System
Money laundering is a serious issue in Iceland. Defined as any receipt, handling or transfer of gains obtained by illicit means, it is a key prerequisite for organized crime to thrive. The consequences are far-reaching and devastating, stifling competition and hindering the proper functioning of market forces.
To combat this issue, the state must ensure:
- Reliable and visible supervision
- Robust systems within obliged entities
Terrorist Financing: A Serious Concern in Iceland
The financing of terrorism is another serious concern in Iceland. This involves raising funds for the purpose or with knowledge that they will be used to commit crimes punishable under Article 100 (a-c) of the General Penal Code.
Terrorists often rely on funding to carry out their heinous acts, and it is imperative that Iceland takes measures to prevent this type of financing.
Combating Money Laundering and Terrorist Financing in Iceland
In response to these threats, Iceland has enacted the Anti-Money Laundering and Terrorist Financing Act no. 140/2018. This legislation imposes obligations on parties engaging in activities that could be used for money laundering or terrorist financing.
The key provisions of this act include:
- Requiring parties to know the identity of their customers
- Notifying competent authorities if they suspect illegal activities
Supervision and Enforcement
The Central Bank of Iceland plays a crucial role in supervising these parties and ensuring compliance with the provisions of the Act. The bank has the authority to impose penalties for non-compliance, including:
- Administrative fines
- Dismissal of board members and managing directors
- Revocation of operating licenses
- Sanctions
Conclusion
It is essential that Iceland’s authorities remain vigilant in their efforts to combat money laundering and terrorist financing. By doing so, the country can protect its financial system, promote free competition, and ensure a stable economy for its citizens.
By understanding the types of financial crimes that threaten Iceland’s economy, we can work together to create a safer and more secure financial environment for all.