Financial Crime World

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Iceland’s AML and KYC Regulations: What You Need to Know

In Iceland, the fight against money laundering (AML) and terrorist financing (TF) is a top priority. To ensure compliance with these regulations, businesses must verify the identity of their customers and partners through a process known as Know Your Customer (KYC).

Document Verification: A Crucial Step

At Shufti Pro, we understand the importance of document verification in the KYC process. Our specialized Document Verification service checks the authenticity of documents submitted by customers and partners. This includes verifying security features such as:

  • Holograms
  • Tapered edges
  • Microprinting

Timing of Verification

Identity verification is not a one-time, one-instance process. In Iceland, it is required in multiple instances as per regulations. The timing of verification depends on your requirements and business needs. You are required to verify customer identities when:

  • Onboarding new customers
  • Dealing with transaction data exceeding certain monetary thresholds

Politically Exposed Persons (PEPs) and Enhanced Due Diligence

As part of Iceland’s Enhanced Due Diligence requirements, businesses must determine if their customers are PEPs or exhibit a higher risk profile. Shufti Pro provides an AML Screening service that screens individuals against:

  • Global regulatory authorities’ watchlists
  • Foreign and domestic databases
  • Compromised PEPs
  • Sanctioned individuals

Reliance on External Services

Iceland’s regulations allow businesses to seek the services of third-party providers for due diligence measures. However, you remain liable for maintaining all compliance and fulfilling AML and KYC obligations.

Record Retention

As per Iceland’s Act, businesses are required to retain data for at least five years as part of their AML and KYC obligations. If this information is processed, collected, or managed by a third-party provider, you must collect all necessary information from the third party without undue delay.

By understanding these regulations, businesses in Iceland can ensure compliance with AML and KYC requirements, protect themselves against money laundering and terrorist financing risks, and maintain a trusted reputation in the market.