Financial Crime World

Title: FATF Report: Iceland’s Progress towards Implementing Anti-Money Laundering Recommendations

FATF Follow-Up Report for Iceland - 2021

The Financial Action Task Force (FATF) has released reports indicating significant progress made by Iceland in implementing the technical requirements of the FATF Recommendations. Here’s a breakdown of Iceland’s progress in various categories:

Iceland’s Compliance with FATF Recommendations

Compliant Categories (10 in total)

  1. Assessing risk and applying a risk-based approach - R.1
  2. Money laundering offense - R.3
  3. Customer due diligence - R.10
  4. Record keeping - R.11
  5. Politically exposed persons - R.12
  6. Financial institution secrecy laws - R.9
  7. Suspicious transactions reporting - R.20
  8. Tipping-off and confidentiality - R.21
  9. Customer due diligence for designated non-financial businesses and professions (DNFBPs) - R.22
  10. Responsibilities of law enforcement and investigative authorities - R.30

Largely Compliant Categories (10 in total)

  1. National cooperation and coordination - R.2
  2. Confiscation and provisional measures - R.4
  3. Targeted financial sanctions related to terrorism & terrorist financing - R.6
  4. Targeted financial sanctions related to proliferation - R.7
  5. Transparency and beneficial ownership of legal persons - R.24
  6. Transparency and beneficial ownership of legal arrangements - R.25
  7. Regulation and supervision of financial institutions - R.26
  8. Powers of supervisors - R.27
  9. Regulation and supervision of DNFBPs - R.28
  10. Mutual legal assistance: freezing and confiscation - R.38

Compliant Categories in Part (3 in total)

  1. Correspondent banking - R.13
  2. New technologies - R.15
  3. International instruments - R.36

Partially Compliant Categories (3 in total)

  1. Wire transfers - R.16
  2. Reliance on third parties - R.17
  3. Internal controls and foreign branches and subsidiaries - R.18

Largely Compliant Categories with Some Requirements Not Met (2 in total)

  1. Targeted financial sanctions related to terrorism & terrorist financing - R.5: Iceland is largely compliant but faces challenges in updating its terrorist-related lists.
  2. Transparency and beneficial ownership of legal persons and arrangements: Iceland is largely compliant, but it continues to make progress to provide timely access to beneficial ownership information.

Iceland’s Commitment to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Efforts

The ongoing commitment of Iceland to combat money laundering and terrorist financing effectively is evident through its progress towards meeting international requirements. Despite areas requiring additional efforts, Iceland remains dedicated to meeting FATF Recommendations in full.