Financial Crime World

Non-Profit Organisations Must Register: New Requirements Come into Effect

A new law has been introduced in Iceland, requiring non-profit organisations to register with the authorities. The Act No. 119/2019 on the Obligation of Non-profit Organisations to Register is aimed at increasing transparency and combating money laundering and terrorist financing.

Government Agencies Involved

Several government agencies are responsible for overseeing various aspects of financial transactions and law enforcement:

  • Customs Iceland: Enforces customs laws and regulations.
  • Financial Intelligence Unit (FIU): An independent administrative unit that receives and analyzes notices of suspected money laundering or terrorist financing activities.
  • District Prosecutor’s Office (DPO): Exercises prosecutorial authority in cases involving serious offences.
  • Law Enforcement Agencies (LEAs): Investigates violations under the supervision of the District Prosecutor or Chief of Police.
  • Directorate of Tax Investigations (DTI): Responsible for investigating tax-related crimes.
  • National Commissioner of the Icelandic Police (NCIP): Handles police matters and prepares national risk assessments.
  • Ministry of Foreign Affairs (MFA): Implements international restrictive measures and freezes assets.
  • Ministry of Industry and Innovation (MoII): Supervises non-profit organisations and their registration.

New Requirements for Non-Profit Organisations

The new law requires non-profit organisations to register with the authorities, providing detailed information about:

  • Their activities
  • Finances
  • Beneficiaries

This move is aimed at increasing transparency and preventing the misuse of funds by these organisations.

Increase in Predicate Offences of Money Laundering

Iceland has seen an increase in predicate offences of money laundering, including:

  • Theft
  • Fraud
  • Embezzlement
  • Tax fraud
  • Drug offences
  • Document violations

According to statistics from the police, theft is a common predicate offence for money laundering, with mobile organised criminal groups from Eastern Europe suspected of committing burglaries and thefts in the country.

Government Measures to Combat Crime

The government has implemented measures to combat these crimes, including:

  • Increasing cooperation between law enforcement agencies
  • Implementing stricter regulations on financial transactions

These measures aim to prevent money laundering and terrorist financing while promoting transparency and accountability.