Financial Crime World

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Iceland’s Anti-Money Laundering and Counter-Terrorist Financing Measures Face Scrutiny

Reykjavik, Iceland - A comprehensive risk assessment has identified several areas where Iceland needs to improve its anti-money laundering (AML) and counter-terrorist financing (CFT) measures. According to the latest report by [Organization], Iceland’s financial sector faces significant risks and vulnerabilities that require immediate attention.

Need for Improvement

The report highlights the need for Iceland to:

  • Increase supervisory resources at the Financial Supervisory Authority (FSA) and Consumer Agency
  • Establish a framework for effective implementation of targeted financial sanctions for terrorist financing and proliferation financing
  • Ensure that financial institutions and designated non-financial businesses and professions (DNFBPs) have a risk-based approach to their AML/CFT measures

Recommendations

To address the identified weaknesses, the report recommends:

  • Assessing ML/TF risks associated with different legal persons and establishing appropriate mitigating measures
  • Deepening understanding of ML/TF risks within institutions and sectors supervised

Key Findings

  • Iceland’s effectiveness ratings for AML/CFT measures are low to moderate
  • Several areas where Iceland is non-compliant or partially compliant with international standards
  • Risk assessment highlights significant vulnerabilities in the financial sector

Next Steps

To strengthen Iceland’s AML/CFT framework and reduce risks associated with money laundering and terrorist financing, the authorities must:

  • Take immediate action to address the weaknesses identified in the report
  • Strengthen the country’s AML/CFT framework
  • Enable parallel financial investigations to combat financial crime

Full Report

The full report can be accessed on the website of [Organization]. The recommendations outlined in the report aim to enable parallel financial investigations, strengthen the country’s AML/CFT framework, and reduce the risks associated with money laundering and terrorist financing.