Financial Crime World

Iceland’s Regulatory Bodies Join Forces to Combat Money Laundering and Terrorism Financing

A Network of Government Agencies and Organizations Unite Against Financial Crimes

Reykjavik, Iceland - A network of government agencies and organizations has been established to combat money laundering and terrorism financing in Iceland. The entities involved include:

  • Financial Intelligence Unit (FIU)
  • District Prosecutor’s Office (DPO)
  • Law Enforcement Agencies (LEAs)
  • Directorate of Tax Investigations (DTI)
  • National Commissioner of the Icelandic Police (NCIP)
  • Ministry of Foreign Affairs
  • Ministry of Industry and Innovation

Predicate Offences of Money Laundering Common in Iceland

According to a report released by the FIU, predicate offences of money laundering are common in Iceland. These include:

  • Theft
  • Fraud
  • Embezzlement
  • Tax fraud
  • Drug offences
  • Document violations

The report highlights that even though Iceland is considered one of the safest countries in the world, there are still many cases of predicate offences that can be linked to money laundering.

The NCIP’s National Security Unit has noted an increase in theft-related crimes, particularly organized burglaries and theft committed by mobile criminal groups from Eastern Europe. The unit suspects that these groups are targeting Iceland for financial gain.

System of Registration and Supervision Established

To combat this issue, the government agencies and organizations have established a system of registration and supervision. This includes:

  • Ministry of Industry and Innovation responsible for supervising the Icelandic Registry of Beneficial Owners
  • Financial Supervisory Authority (FSA) falls under the Ministry of Finance and Economic Affairs

How the System Works

The FIU receives notices of transactions suspected to involve money laundering or terrorist financing and analyzes them along with necessary additional information before disseminating its findings to competent parties. The DPO exercises prosecutorial authority in cases involving predicate offences, while LEAs investigate violations under the supervision of the DPO or NCIP.

  • DTI responsible for investigating tax-related crimes, including tax fraud
  • NCIP prepares national risk assessments and investigates terrorism-related cases, including financing
  • Ministry of Foreign Affairs responsible for executing international restrictive measures and freezing assets
  • Ministry of Industry and Innovation implements registration requirements for non-profit organizations under Act No. 119/2019 on the Obligation of Non-Profit Organisations to Register

Quote from a Government Spokesperson

“By working together, we can effectively combat money laundering and terrorism financing in Iceland,” said a government spokesperson. “Our goal is to ensure that our financial system remains secure and transparent.”

[Figure 1: Government parties and other authorities involved in measures against money laundering and terrorist financing]