Iceland Takes Significant Step in Combating Terrorism Financing and Money Laundering with Robust Regulatory Framework

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Reykjavik, Iceland - In a major move to protect its financial sector from illegal activities, Iceland has established a robust regulatory framework to combat terrorism financing and money laundering. The country’s commitment to anti-money laundering (AML) and countering the financing of terrorism (CFT) has been recognized globally, showcasing its dedication to domestic financial stability and the worldwide fight against financial crimes.

AML/CFT Regulations

In 2019, the Icelandic government issued crucial AML/CFT and countering proliferation financing regulations, addressing a range of issues including money laundering and terrorist financing. These comprehensive rules aimed at preventing the financing of terrorism and other serious crimes, requiring authorized institutions to implement and maintain stringent AML measures.

FATF Recognition

A recent Mutual Evaluation Report by the Financial Action Task Force (FATF) praised Iceland’s efforts, deeming it Compliant for 22 and Largely Compliant for 16 out of 40 Recommendations. The report also highlighted Iceland’s Highly Effective rating for zero and Substantially Effective rating for one out of four Effectiveness & Technical Compliance ratings.

Government Commitment

The government plays a crucial role in shaping Iceland’s AML landscape, consistently demonstrating its dedication to eradicating money laundering and terrorist financing through stringent regulations and severe penalties for offenders. The Executive Committee on money laundering and terrorist financing, comprising representatives from relevant ministries, law enforcement agencies, auditors, tax authorities, and other stakeholders, ensures a collaborative approach to addressing AML challenges.

FATF Acknowledgement

Iceland’s efforts have been recognized by the FATF, which has acknowledged the country’s significant improvements in its AML/CFT regimes. Iceland is no longer listed among countries with significant AML deficiencies, marking a major milestone. The country continues to collaborate with the FATF to enhance its AML framework, addressing industry-related risks and developing specific risk assessments.

Sanction Scanner

Sanction Scanner offers tailored AML solutions to financial institutions operating in Iceland, providing access to sanctions and watch lists from regulatory and law enforcement agencies worldwide. The company’s services enable businesses to fulfill global and local AML obligations, safeguarding themselves from legal penalties.

By implementing a robust regulatory framework and collaborating with international organizations like the FATF, Iceland is taking a significant step towards combating terrorism financing and money laundering, ensuring a safer financial landscape for its citizens and institutions alike.