Title: Iceland’s Progress in Combating Money Laundering: A Look at the FATF Recommendations
According to reports from the Financial Action Task Force (FATF), Iceland has made significant strides towards complying with the FATF Recommendations against Money Laundering and Terrorist Financing. This summary outlines Iceland’s current status regarding these recommendations.
Iceland’s FATF Follow-Up Report - 2021
Below is an assessment of Iceland’s compliance with each FATF recommendation.
Risk assessment and application of a risk-based approach (R.1)
- Compliant
National cooperation and coordination (R.2)
- Compliant
Money laundering offense (R.3)
- Compliant
Confiscation and provisional measures (R.4)
- Large compliance issues
Terrorist financing offense (R.5)
- Large compliance issues
Targeted financial sanctions related to terrorism and terrorist financing (R.6)
- Compliant
Targeted financial sanctions related to proliferation (R.7)
- Compliant
Non-profit organizations (R.8)
- Large compliance issues
Financial institution secrecy laws (R.9)
- Compliant
Customer due diligence (R.10)
- Compliant
Record keeping (R.11)
- Compliant
Politically exposed persons (R.12)
- Compliant
Correspondent banking (R.13)
- Partial compliance
Money or value transfer services (R.14)
- Large compliance issues
New technologies (R.15)
- Partial compliance
Wire transfers (R.16)
- Compliant
Reliance on third parties (R.17)
- Compliant
Internal controls and foreign branches and subsidiaries (R.18)
- Large compliance issues
Higher-risk countries (R.19)
- Compliant
Reporting of suspicious transactions (R.20)
- Compliant
Tipping-off and confidentiality (R.21)
- Compliant
Customer due diligence for designated non-financial businesses and professions (R.22)
- Compliant
Other measures for designated non-financial businesses and professions (R.23)
- Large compliance issues
Transparency and beneficial ownership of legal persons (R.24)
- Large compliance issues
Transparency and beneficial ownership of legal arrangements (R.25)
- Compliant
Regulation and supervision of financial institutions (R.26)
- Large compliance issues
Powers of supervisors (R.27)
- Compliant
Regulation and supervision of designated non-financial businesses and professions (R.28)
- Compliant
Financial intelligence units (R.29)
- Large compliance issues
Responsibilities of law enforcement and investigative authorities (R.30)
- Large compliance issues
Powers of law enforcement and investigative authorities (R.31)
- Large compliance issues
Cash couriers (R.32)
- Compliant
Statistics (R.33)
- Large compliance issues
Guidance and feedback (R.34)
- Compliant
Sanctions (R.35)
- Large compliance issues
International instruments (R.36)
- Large compliance issues
Mutual legal assistance (R.37)
- Large compliance issues
Mutual legal assistance: freezing and confiscation (R.38)
- Large compliance issues
Extradition (R.39)
- Large compliance issues
Other forms of international cooperation (R.40)
- Large compliance issues
Conclusion
Iceland has made progress in various areas, but significant improvements are needed in others. The FATF will continue collaborating with Iceland to address these issues and strengthen its Anti-Money Laundering policies.