Financial Crime World

Global Non-Profit Organizations Raise Awareness on Money Laundering and Terrorist Financing

As non-profit organizations (NPOs) continue to operate across borders, they face a growing threat from money laundering and terrorist financing. To combat this issue, numerous governmental parties have become involved in matters related to the supervision of NPOs.

The Growing Threat

Iceland is considered one of the safer countries in the world regarding crime, with low frequency of serious violent offenses. However, every year there are many offenses that can be predicate offenses of money laundering.

  • Common predicate offenses include:
    • Theft
    • Fraud
    • Embezzlement
    • Tax fraud
    • Drug offenses
    • Document violations

According to information from the police, theft is one kind of enrichment offense and a common predicate offense to money laundering.

Governmental Efforts

To address this issue, various government parties are involved in measures against money laundering and terrorist financing. These include:

  • Ministry of Foreign Affairs: responsible for executing Act No. 93/2008 on Carrying out International Restrictive Measures and the Freezing Act No. 64/2019
  • Ministry of Industry and Innovation: oversees matters related to the Registration Division of the Icelandic Tax Authority
  • Ministry of Finance and Economic Affairs: responsible for supervising financial institutions

Authorities Involved

Several authorities are involved in combating money laundering and terrorist financing, including:

  • National Commissioner of the Icelandic Police: responsible for preparing national risk assessments under the Act on Measures against Money Laundering and Terrorist Financing
  • Financial Supervisory Authority (FSA): plays a crucial role in monitoring financial institutions

Responsibilities of NPOs

In light of these efforts, it is essential for NPOs to be aware of their responsibilities in preventing money laundering and terrorist financing. This includes:

  • Ensuring that all transactions are transparent
  • Reporting suspicious activities to the relevant authorities
  • Implementing robust anti-money laundering and anti-terrorist financing measures within their organizations

Staying Informed

As the global non-profit community continues to evolve, it is crucial for NPOs to stay informed about the risks of money laundering and terrorist financing and to take proactive steps to mitigate these threats. By working together with governmental parties and authorities, NPOs can play a vital role in preventing financial crimes and ensuring the integrity of their operations.