Financial Crime World

Icelandic Authorities Unite to Combat Money Laundering and Terrorist Financing

Reykjavik, Iceland - The Icelandic government has launched a comprehensive effort to strengthen its policies and measures against money laundering and terrorist financing. A range of authorities are working together to ensure that individuals and companies in Iceland comply with anti-money laundering and anti-terrorist financing regulations.

Key Authorities Involved

  • Financial Supervisory Authority (FSA): Responsible for monitoring financial institutions, electronic money companies, and pension funds to ensure they adhere to the country’s anti-money laundering laws.
  • Directorate of Internal Revenue (DIR): Operates the Register of Companies and monitors accounting firms, law firms, and realtors to prevent illegal activities.
  • Financial Intelligence Unit (FIU): An independent administrative unit within the District Prosecutor’s Office that receives notices of suspicious transactions related to money laundering or terrorist financing. It analyzes these transactions, gathers additional information, and disseminates its findings to competent authorities.

Roles and Responsibilities

  • Directorate of Customs: Handles customs matters, including levying duties and monitoring imports and exports.
  • District Prosecutor’s Office: Exercises prosecutorial authority in cases related to money laundering and terrorist financing.
  • Law Enforcement Authorities (LEA): Investigates violations under the supervision of the District Prosecutor or Chief of Police.
  • National Commissioner of the Icelandic Police (NCIP): Responsible for carrying out risk assessments under the Act on Anti-money Laundering and Anti-terrorist Financing, as well as investigating cases related to terrorism.
  • Ministry of Foreign Affairs: Responsible for executing international coercive measures and freezing funds related to terrorist financing and weapons of mass destruction.
  • Ministry of Industry and Innovation: Supervises matters related to the Directorate of Internal Revenue’s Registration Division.
  • Ministry of Finance and Economic Affairs: Oversees the Financial Supervisory Authority (FSA).

Risk Assessment Methodology

The National Commissioner of the Icelandic Police (NCIP) leads risk assessments in consultation with the Ministry of Justice and a task force comprising representatives from various ministries, authorities, and organizations. The Central Bank of Iceland, Register of Companies, and market participants were also indirectly involved in the risk assessment process.

By working together, Icelandic authorities aim to enhance their efforts against money laundering and terrorist financing, ensuring that the country remains a safe and secure place for businesses and individuals alike.