Financial Crime World

Icelandic Central Bank Ensures Compliance Training for Banks

The Central Bank of Iceland has implemented measures to monitor compliance with laws, regulations, and rules governing financial activities among regulated entities, ensuring their consistency with sound business practices.

Supervision of Financial Activities

According to Article 2 of Act no. 87/1998 on Official Supervision of Financial Activities, the Central Bank supervises:

  • Financial Undertakings: commercial banks, savings banks, credit undertakings, investment firms, and other entities in the financial market.
  • Insurance Companies: overseeing acquisitions of issuers, investment services, short selling, derivatives trading, and market abuse.

Additionally, the bank monitors:

  • Securities Market: ensuring compliance with regulations on acquisitions of issuers, investment services, short selling, derivatives trading, and market abuse.
  • Insurance Contracts: monitoring distance selling of financial services, key information documents for packaged retail products, and information on sustainability in financial services.

Special Supervision

The Central Bank also has special supervision over:

  • Winding-up of Financial Undertakings: managed by winding-up boards, regardless of whether the undertaking holds an operating licence or not.
  • Activities Abroad: ensuring compliance with special laws and international agreements to which Iceland is a party. This includes activities conducted by Icelandic entities outside the country and foreign entities operating in Iceland.

Compliance Training for Banks

By providing comprehensive compliance training for banks, the Central Bank of Iceland aims to:

  • Maintain the stability and integrity of the financial system
  • Promote sound business practices among regulated entities
  • Ensure consistency with laws, regulations, and rules governing financial activities

Overall, the Central Bank’s supervisory responsibilities are designed to ensure that financial institutions operate in a manner that is consistent with sound business practices and compliant with relevant laws and regulations.