Financial Crime World

Iceland’s Efforts to Combat Financial Crime Under Scrutiny

Reykjavik, Iceland - A recent report has shed light on the challenges faced by Icelandic law enforcement authorities in tracing and seizing the proceeds of crimes, both domestically and abroad.

Challenges in Tracing and Seizing Assets

  • The country lacks complete statistics on recovered assets, making it difficult to assess its effectiveness in this area.
  • There appears to be a lack of coordination among authorities regarding the increased risk of cross-border transportation or movement of currency.

Anti-Terrorism Financing Efforts

  • Iceland has not conducted any criminal investigations or prosecutions related to terrorist financing activities.
  • The country lacks a comprehensive understanding of the vulnerabilities related to terrorist financing.

Implementation of Targeted Financial Sanctions

  • There is a lack of clarity among authorities and the private sector regarding when freezing obligations take effect in Iceland.
  • Supervisory authorities do not monitor or ensure compliance with targeted financial sanctions for terrorist financing and proliferation.

Anti-Money Laundering and Counter-Terrorist Financing Measures

  • Supervisory authorities do not monitor or ensure compliance with targeted financial sanctions for terrorist financing and proliferation.
  • There is a low level of awareness among designated non-financial businesses and professions (DNFBPs) and certain financial institutions (FIs) about their responsibilities related to these measures.

Need for Preventive Measures

  • Structured risk assessments are needed to identify money laundering and terrorist financing risks.
  • Large commercial banks have some understanding of these risks, but other FIs and DNFBPs appear not to assess them or demonstrate an understanding of any such risks.

Licencing and Registration Framework

  • Iceland has a comprehensive licencing and registration framework in place.
  • However, its supervision is limited and lacks a comprehensive risk-based approach. Inspections and supervisory measures are not conducted regularly, which can lead to technical deficiencies and impact the effectiveness of anti-money laundering and counter-terrorist financing measures.

Conclusion

The report’s findings have raised concerns about Iceland’s ability to effectively combat financial crime, and calls for improved coordination among authorities, increased awareness among FIs and DNFBPs, and more effective implementation of targeted financial sanctions.