Title: Landsbankinn’s Crusade Against Financial Crime: A Policy of Prevention and Compliance
Objective and Scope
In the wake of increasing financial crime concerns, Landsbankinn, Iceland’s leading financial institution, has strengthened its defenses against money laundering, terrorist financing, fraud, and other illicit activities. In September 2023, Landsbankinn’s Board of Directors approved an updated Policy on Measures against Financial Crime.
- Commitment to Minimizing Financial Crime Risk Landsbankinn is dedicated to minimizing the risk of financial crime within its operations and relationships with various stakeholders.
- Definition of Financial Crime Financial crime is defined as money laundering, terrorist financing, violations of trade sanctions, fraud, bribery and corruption, market abuse, and other illicit enrichment.
- Legal Obligations Landsbankinn abides by Icelandic laws such as the Act on Measures against Money Laundering and Terrorist Financing, the Act on Implementation of International Sanctions and Freezing of Funds, the Act on Measures to Prevent Market Abuse, and the United Nations Convention against Corruption.
Combatting Financial Crime
Emphasis on Adherence and Prevention
Landsbankinn focuses on adherence to legal requirements and implementing best practices from international and domestic financial frameworks to mitigate the risk of potential financial crime. The institution refrains from conducting business with individuals and entities that carry excessive risk.
Governance and Management
Effective Governance Procedures
Landsbankinn’s governance procedures against financial crime include a regularly reviewed policy, rules, and procedures based on the bank’s policy on Internal Control.
- Regulations Cover Due Diligence, Risk Assessment, Monitoring, Reporting Obligations, and Market Abuse Investigations
Management’s Responsibilities
Executive Board’s Role
The Executive Board plays a crucial role in ensuring the effectiveness of Landsbankinn’s financial crime mitigation strategies. Managers are expected to contribute to a healthy corporate culture and ensure that employees undergo mandatory training.
- Appointments The Board has appointed a member of the Executive Board, responsible for AML/CFT, and a money laundering and reporting officer (MLRO).
Monitoring, Training, and Policy Reviews
Compliance Officer’s Role
The Compliance Officer works with the Bank’s Executive Board to maintain rules and procedures aimed at coordinated work processes and good implementation of financial crime-related legislation, regulations, internal rules, and procedures.
- Employee Training and Education Employees receive training on financial crime and policies, with ongoing education to ensure awareness of current regulations.
- Policy Review This Policy undergoes annual reviews or more frequently if required.
Conclusion
Landsbankinn remains committed to safeguarding the interests of its customers, shareholders, and the nation as a whole by taking a proactive role against financial crime.