Financial Crime World

Iceland’s Financial Crime Risk Assessment: A Pivotal Step to fortify Defenses against Money Laundering and Terrorist Financing

Unveiling Iceland’s Strategy to Combat Money Laundering and Terrorist Financing

[Current Month, Year]

Iceland’s latest financial crime risk assessment showcases its commitment to upholding international standards and implementing robust measures against money laundering and terrorist financing. In this article, we’ll delve into the key points of the assessment.

Iceland’s History of Fighting Money Laundering and Terrorist Financing

  1. IMF’s recognition of Iceland’s progress against money laundering and terrorist financing risks
  2. Third edition of the financial crime risk assessment
  3. Unwavering commitment to FATF and international guidelines

Significant Step Forward: Post-“Grey List” Iceland

  1. Removal from FATF’s “grey list” in October 2020
  2. Thorough analysis of money laundering and terrorist financing risks

Sector-specific Risks

The risk assessment covers various sectors, each with unique risks:

  • Tax fraud
  • Cash transactions
  • Company operations
  • Financial markets
  • Specialists
  • Gambling
  • Trade and services
  • Miscellaneous risks

Assessment Methodology

  1. Evaluating threats and weaknesses
  2. Assessing potential consequences
  3. Proposing remedial measures
  1. Icelandic Law no. 64/2006
  2. European Union’s Fourth Anti-Money Laundering Directive

Relevance of Tax Fraud

  1. Significant predicate offense
  2. Detailed discussion in the risk assessment

Conclusion

The findings of the assessment will inform both domestic and international response strategies, further strengthening Iceland’s defenses against illicit financial activities.

References

  1. National Commissioner of the Icelandic Police. (2021). Skýrsla dómsmálaráðherra um aðdraganda og ástæður Þess að Ísland hafnaði.
  2. FATF. (2020). International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation.
  3. Iceland Government Offices. (2019). Report of the Minister of Justice and the Minister of Finance and Economic Affairs on the lead-up to and reasons that Iceland ended up on FATF’s " grey list".
  4. National Commissioner of the Icelandic Police. (2021). Skýrsla dómsmálaráðherra um aðdraganda og ástæður Þess að Ísland hafnaði.
  5. FATF. (2013). FATF Guidance. National Money Laundering and Terrorist Financing Risk Assessment.
  6. Parliament of Iceland. (2018). Act no. 140/2018 on Measures against Money Laundering and Terrorist Financing.
  7. European Union. (2001). Directive no. 2001/97/EEC and (2015). Directive no. 2015/849/EC.
  8. National Commissioner of the Icelandic Police. (2021). Skýrsla dómsmálaráðherra um aðdraganda og ástæður Þess að Ísland hafnaði.
  9. National Commissioner of the Icelandic Police. (2021). Skýrsla dómsmálaráðherra um aðdraganda og ástæður Þess að Ísland hafnaði.