Financial Crime Definition Takes Center Stage in Iceland
Money laundering is a serious offense that distorts free competition and hinders market forces. It enables criminals to exploit financial systems, allowing organized crime to thrive and wreak havoc on a nation’s financial system.
What is Money Laundering?
Money laundering is defined as the receipt, handling or transfer of profits or assets obtained through illicit means, violating either the Penal Code or special laws. This criminal activity has far-reaching consequences, making it essential for governments to take action.
- Distorts free competition and hinders market forces
- Enables criminals to exploit financial systems
- Allows organized crime to thrive
Combating Money Laundering
To combat money laundering, governments must ensure reliable and visible supervision over obliged entities. This makes it unappealing for criminals to operate within their borders.
- Reliable and visible supervision over obliged entities
- Prevents criminal activity from going undetected
- Maintains a stable financial system
The Financing of Terrorism
The financing of terrorism is another pressing concern, defined as raising funds with the intention or knowledge that they will be used to commit crimes punishable under Article 100 (a-c) of Iceland’s General Penal Code. This nefarious activity often involves funding acts of terrorism and supporting terrorist groups.
- Raises funds for criminal activities
- Funds acts of terrorism and supports terrorist groups
- Undermines national security
Act no.140/2018 on Measures against Money Laundering and Terrorist Financing
Iceland has implemented Act no.140/2018 to address these issues. The law obliges parties engaging in activities that could be used for money laundering or terrorist financing to identify their customers and notify authorities if they suspect or know about illegal activities.
- Identifies customers
- Notifies authorities of suspicious activity
- Ensures compliance with relevant laws
Supervision by the Central Bank of Iceland
The Central Bank of Iceland plays a crucial role in supervising parties engaged in these activities. The bank ensures compliance with the relevant laws and can impose penalties if necessary, including:
- Administrative fines
- Dismissal of board members
- Revocation of operating licenses
- Sanctions
Conclusion
Iceland’s anti-money laundering efforts are crucial in combating financial crime and maintaining a stable financial system. As authorities continue to monitor and regulate financial activities, it is essential that individuals and businesses understand their roles and responsibilities in preventing money laundering and the financing of terrorism.
- Prevents criminal activity
- Maintains a stable financial system
- Ensures national security