Financial Crime World

Iceland’s Crusade Against Financial Crimes: A New Era of Anti-Money Laundering and Terrorist Financing Policies

Iceland’s commitment to combating money laundering, terrorist financing, and proliferation of weapons of mass destruction (CFP) was reaffirmed with the publication of its latest policy in July 2019. This article discusses Iceland’s priorities to ensure a robust system for investigating suspicious activities and preventing these illegal acts from taking place within its borders.

Investigating Money Laundering

Any suspicion of money laundering, whether it’s an independent or a predicate offense, will be investigated appropriately. Icelandic authorities are instructed to:

  • Assess whether charges should be laid for money laundering offenses, either independently or in conjunction with a predicate offense.
  • Exercise authorizations for seizure and confiscation of unlawful gains when justified.

Counteracting Terrorist Financing

Icelandic authorities are urged to remain vigilant despite the country’s geographical isolation:

  • Outline vulnerabilities
  • Ensure prevention measures
  • Conduct investigations when a suspicion arises
  • Make sure adequate procedures exist for the investigation and follow-up of CFT cases

Key Parties Involved

Several key parties play a role in Iceland’s fight against financial crimes:

  1. Ministry of Justice: Supervision of the issue category and appoints the AML/CTF task force
  2. Financial Supervisory Authority: Monitors the compliance of obliged entities with the Act on Anti-Money Laundering and Anti-Terrorist Financing
  3. Directorate of Internal Revenue: Operates the Register of Companies and monitors sectors like accounting firms, law firms, gambling sector, and realtors
  4. Financial Intelligence Unit: Receives, analyzes, and disseminates suspicious transactions notices to competent authorities

Collaborative Efforts

To coordinate and cooperate effectively, Iceland has a Steering Committee on anti-money laundering and terrorist financing:

  • Attends to policy-making
  • Ensures oversight
  • Promotes coordination regarding AML and CFT measures
  • Follows up on recommendations from international bodies, like FATF

Progress and Recognition

Despite Iceland’s efforts, improvements are being made:

  • Updates from “partially compliant” to “compliant” in the latest FATF evaluation
  • Effectiveness of the Government’s policy counteracting financial crimes in areas like:
    • Financial institutions secrecy laws
    • Customer due diligence
    • Politically exposed persons
    • New technologies
    • Wire transfers
    • Internal controls for foreign branches and subsidiaries

Conclusion

Iceland is taking a firm stance against financial crimes through:

  • Robust regulatory frameworks
  • Increased coordination between agencies
  • Ongoing efforts to improve preventive measures globally