Financial Crime World

Title: Iceland’s Progress in Combating Financial Crimes: FATF Report Card

According to the Financial Action Task Force (FATF), Iceland has made notable strides in adhering to regulations against financial crimes as outlined in its latest Follow-Up Report. However, certain areas require further improvement.

Overview

Iceland’s compliance with the FATF Recommendations reflects the extent to which a country adheres to the international organization’s standards for countering money laundering and terrorist financing.

Iceland’s Progress on FATF Recommendations

The following represents Iceland’s progress towards FATF Recommendations:

  1. Risk Assessment & Risk-based Approach (R.1): Fully Compliant (C)
  2. National Cooperation and Coordination (R.2): Fully Compliant (C)
  3. Money Laundering Offence (R.3): Fully Compliant (C)
  4. Confiscation and Provisional Measures (R.4): Largely Compliant (LC)
  5. Terrorist Financing Offence (R.5): Largely Compliant (LC) …
  6. Transparency and Beneficial Ownership of Legal Persons (R.24): Largely Compliant (LC)
  7. Transparency and Beneficial Ownership of Legal Arrangements (R.25): Conditionally Compliant (C)
  8. Regulation and Supervision of Financial Institutions (R.26): Largely Compliant (LC)
  9. Regulation and Supervision of Designated Non-Financial Business and Professions (R.28): Fully Compliant (C)

Recommendations Still in Progress

The areas requiring improvement are:

  • Correspondent Banking (R.13): Partially Compliant
  • Financial Intelligence Units (R.26): Largely Compliant
  • Transparency and Beneficial Ownership of Legal Arrangements: Conditionally Compliant

Next Steps for Iceland

Iceland must work towards fully meeting FATF standards in the following areas:

  1. Correspondent Banking: Improve regulatory frameworks and implement effective risk assessments for correspondent banking relationships.
  2. Financial Intelligence Units: Enhance functional autonomy and analyze information received to ensure effective financial intelligence.
  3. Transparency and Beneficial Ownership of Legal Arrangements: Increase transparency and enable access to beneficial ownership information to the public.