Iceland’s Financial Intelligence Unit Sees Increased Demand for Suspicious Transaction Reports

In a bid to combat money laundering and terrorist financing, Iceland’s Financial Intelligence Unit (FUI) has issued new guidelines for obliged entities, employees, and managers to report suspicious transactions in a timely manner. The FUI is responsible for processing these reports and analyzing the information attached.

New Guidelines for Obliged Entities

According to international rules, obliged entities are required to report any transaction that appears to have no economic or legitimate purpose, as well as unusually high or complex transactions, or those involving parties from high-risk countries. The FUI defines suspicion as a sufficient level of doubt, rather than requiring detailed and unequivocal evidence.

Obliged Entities’ Responsibilities

Obliged entities must also carry out some preliminary investigation and analysis before reporting suspicious activity to the FUI. This includes:

• Avoiding business with individuals or organizations suspected of criminal conduct
• Sending notifications through the goAML System, which contains clear information about:
  • The individual or transaction being reported
  • The reasons for suspicion

AML/CFT Compliance Officer

Icelandic obliged entities are required to appoint an Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) compliance officer who will handle notifications to the FUI. This officer must have unconditional access to relevant customer data and transactions.

Strengthening Measures Against Money Laundering and Terrorist Financing

The move is part of Iceland’s efforts to strengthen its measures against money laundering and terrorist financing, and comes as the country looks to increase transparency and cooperation with international authorities.

In summary, Iceland’s Financial Intelligence Unit has issued new guidelines for obliged entities to report suspicious transactions in a timely manner. Obliged entities must carry out preliminary investigation and analysis before reporting suspicious activity, and appoint an AML/CFT compliance officer who has access to relevant customer data and transactions.