Financial Inclusion Key to Tackling Crime in Iceland, Experts Say

Reykjavik - As Iceland’s economy continues to grow, concerns are growing about the potential for financial crimes to thrive in the country. Money laundering and terrorist financing have become major concerns for authorities, with experts warning that without adequate measures to prevent these crimes, they could have a devastating impact on society.

The Impact of Financial Crimes

• Money laundering is a key prerequisite for organized crime to flourish in Iceland, allowing criminals to hide their illicit gains and perpetuate their criminal activities.
• This not only harms the financial system but also hinders free competition and distorts market forces.

Measures to Prevent Financial Crimes

Icelandic authorities have implemented measures to prevent money laundering and terrorist financing. The Anti-Money Laundering and Terrorist Financing Act, which came into force in 2018, requires parties engaging in activities that could be used for these crimes to:

• Know the identity of their customers
• Notify the authorities if they suspect or have knowledge of illegal activities

The Central Bank of Iceland (CBI) plays a crucial role in supervising these parties and ensuring compliance with the law. The CBI has the authority to impose penalties, including:

• Administrative fines
• Dismissal of board members and managing directors
• Revocation of operating licenses
• Application of sanctions if necessary

The Importance of Financial Inclusion

Experts warn that more needs to be done to prevent financial crimes in Iceland. They say that financial inclusion is key to tackling crime, as it allows individuals and businesses to access the formal financial system and reduces their reliance on informal channels that are often used for criminal activities.

• “It’s essential that we ensure that everyone has access to safe and reliable financial services,” said [expert name], a leading economist. “This will not only help to prevent financial crimes but also promote economic growth and stability.”

Initiatives to Increase Financial Inclusion

Icelandic authorities have launched initiatives aimed at increasing financial inclusion, including:

• The establishment of a national payment system
• The introduction of digital banking services

While progress has been made, experts say that more needs to be done to address the root causes of financial exclusion in Iceland. They warn that without adequate measures, financial crimes will continue to thrive and pose a significant threat to the country’s economy and society.