Non-Profit Organizations Must Register in Iceland, According to New Law
Reykjavik, Iceland - The Icelandic government has introduced a new law requiring non-profit organizations (NPOs) to register with the authorities to combat money laundering and terrorist financing.
Strengthening Anti-Money Laundering and Combating the Financing of Terrorism Framework
The law is part of a broader effort by the government to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) framework. This move aims to enhance transparency and accountability in Iceland’s financial sector, which is seen as a major step forward.
Registration Requirements for NPOs
Under the new law, NPOs will be required to provide detailed information about their operations, including:
- Beneficiaries
- Financial transactions
- Source of funding
This information will be used by the authorities to monitor and detect suspicious activities, and to prevent the misuse of charitable funds for illegal purposes.
Registration Process and Oversight
The Ministry of Industry and Innovation (MOII) is responsible for overseeing the registration process, which will be conducted through its Registration Division. The division will verify the information provided by NPOs and maintain a publicly accessible register of registered organizations.
Building on Existing Legislation
The new law builds on existing legislation aimed at preventing money laundering and terrorist financing. In 2019, Iceland introduced laws requiring companies to disclose their beneficial owners and requiring banks and other financial institutions to report suspicious transactions.
Implications for NPOs Operating in Iceland
The move is likely to have significant implications for NPOs operating in the country, as it increases transparency and accountability requirements. NPOs will need to ensure that they comply with the new law and provide the required information to maintain their registration.
By registering with the authorities, NPOs can demonstrate their commitment to transparency and accountability, which is essential for maintaining public trust and confidence in the sector.