Financial Crime World

Iceland’s Crackdown on Financial Crimes: Government’s Combat Strategy and Improved Cooperation

The Icelandic government reaffirmed its commitment to combating money laundering, terrorist financing (TF), and proliferation financing (CFP) with the publication of a new policy in July 2019. This title highlights key aspects of the Icelandic government’s latest approach and improvements in cooperation.

Clear Priorities for Anti-Money Laundering (AML), Countering Terrorist Financing (CFT), and Proliferation Financing (CFP)

The government’s policy contains the following priorities:

  • Thorough investigations of all money laundering suspicions
  • Laying charges for money laundering offenses, both independently and in parallel with predicate offenses
  • Seizure and confiscation of unlawful gains from money laundering crimes

AML: Thorough Investigations and Charges

Icelandic authorities are expected to:

  • Investigate all money laundering suspicions
  • Determine the appropriateness of laying charges
  • Seize and confiscate unlawful gains

CFT: Emphasizing Definition of Vulnerabilities and TF Risk

This policy emphasizes:

  • Greater emphasis on defining vulnerabilities related to TF risk
  • Carrying out investigations when suspicious conduct arises
  • Ensuring adequate procedures for the investigation and follow-up of TF cases

Involved Authorities and Improved Cooperation

Numerous authorities are involved in Iceland’s AML, CFT, and CFP efforts:

  • Ministry of Justice
  • Steering Committee on anti-money laundering and terrorist financing measures
  • Financial Supervisory Authority
  • Directorate of Internal Revenue
  • Financial Intelligence Unit
  • Directorate of Customs
  • District Prosecutor’s Office
  • Law enforcement agencies
  • Ministry for Foreign Affairs
  • and more

Improved Communication and Cooperation

Since the second National Risk Assessment (NRA) in April 2019, the government has taken significant steps to improve cooperation, coordination, and communication between:

  • Regular meetings
  • Sharing of information
  • Signing of agreements to enhance cooperation and communication

National Risk Assessment (NRA) and Action Plan

With the publication of the NRA, the government identified shortcomings and published an action plan with 25 actions, targeting specific areas such as:

  • Supervision
  • Regulation
  • Training
  • Information sharing

Substantial Progress in Implementing FATF Recommendations

Since the establishment of the Steering Committee on anti-money laundering and terrorist financing measures in 2018, Iceland has made substantial progress in implementing FATF recommendations, with:

  • 28 FATF recommendations rated largely compliant or compliant
  • Upgrades on 14 recommendations in the first follow-up report

Prosecutions, Convictions, and Continuous Improvement

This determination to counter financial crimes in all forms has led to an increase in prosecutions and convictions related to money laundering and terrorism financing crimes in Iceland. With a strong commitment to continuous improvement and a robust coordination mechanism, Iceland is demonstrating its unwavering determination to counteract financial crimes.