Financial Crime World

Iceland Takes a Multifaceted Approach to Combat Anti-Money Laundering and Terrorist Financing

The Icelandic government has launched a comprehensive initiative to combat anti-money laundering (AML) and terrorist financing. This effort involves multiple agencies and institutions working together to identify and mitigate risks in the financial sector.

Key Agencies Involved

  • Financial Supervisory Authority (FSA): Oversees the activities of financial companies, electronic money companies, and pension funds.
  • Directorate of Internal Revenue (DIR): Monitors accounting firms, law firms, and realtors for compliance with AML regulations.
  • Financial Intelligence Unit (FIU): Receives notices of suspicious transactions, analyzes them to identify potential money laundering or terrorist financing activities, and disseminates findings to competent authorities.
  • Directorate of Customs: Handles customs matters and monitors imports and exports.
  • District Prosecutor’s Office: Exercises prosecutorial authority in cases involving AML and terrorist financing offenses.
  • 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 and investigations related to terrorism.

International Cooperation

  • Ministry for Foreign Affairs: Executes international coercive measures and freezes funds related to terrorist financing.

Risk Assessment Methodology

A risk assessment methodology has been developed in consultation with various stakeholders, including:

  • NCIP
  • Ministry of Justice
  • Task force members from the ministries, directorates, and law enforcement agencies mentioned above.
  • Central Bank of Iceland
  • Register of Companies
  • Market participants

Goals and Objectives

The initiative aims to strengthen Iceland’s anti-money laundering and anti-terrorist financing framework, ensuring that the country remains vigilant in combating these threats. By working together, Icelandic authorities are committed to maintaining a robust financial system and protecting its citizens from illicit activities.

Conclusion

Iceland’s comprehensive approach to combatting AML and terrorist financing demonstrates the country’s commitment to protecting its financial system and its citizens. Through collaboration between various agencies and institutions, Iceland is able to identify and mitigate risks in the financial sector, ensuring a robust and secure financial environment.