Financial Crime World

Iceland’s Financial Sanctions List Under Scrutiny: Report Reveals Compliance Level

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A recent report has shed light on Iceland’s compliance with international standards for combating money laundering and terrorist financing. The country’s financial sanctions list was evaluated against a set of 40 recommendations, resulting in a mixed bag of compliant and non-compliant ratings.

Highlights of the Report

  • Iceland scored highly in areas such as:
    • Assessing risk and applying a risk-based approach (R.1)
    • National cooperation and coordination (R.2)
    • Money laundering offense (R.3)
    • Confiscation and provisional measures (R.4)
    • Targeted financial sanctions related to terrorism and terrorist financing (R.6)
  • However, Iceland was found to be partially compliant in areas such as:
    • Correspondent banking (R.13)
    • Money or value transfer services (R.14)
    • New technologies (R.15)
  • The country received a non-compliant rating for:
    • Transparency and beneficial ownership of legal persons and arrangements (R.24)
    • Regulation and supervision of financial institutions (R.26)

Areas for Improvement

  • Confiscation and provisional measures (R.4): Iceland needs to improve its procedures for confiscating assets and taking provisional measures to combat money laundering.
  • Terrorist financing offense (R.5): The country must strengthen its laws and regulations to prevent terrorist financing activities.
  • International cooperation in mutual legal assistance (R.38): Iceland’s financial intelligence units need to improve their collaboration with international partners to combat money laundering and terrorist financing.

Conclusion

The report serves as a wake-up call for the Icelandic government to take swift action to address these shortcomings and bring its financial sanctions list up to international standards. Strengthening efforts in combating money laundering and terrorist financing will ensure the integrity of Iceland’s financial system and protect its citizens from illicit activities.