Financial Sanctions List in Iceland: Ensuring Compliance with International Sanctions
Sanctions are a crucial tool for maintaining peace and security globally, while also ensuring compliance with human rights and liberty. To achieve this, obliged entities must be vigilant in monitoring their customers for inclusion on international sanctions lists and freezing funds and economic resources if necessary.
Implementation of International Sanctions
According to Act no. 68/2023 on the Implementation of International Sanctions and Freezing of Funds and Economic Resources, obliged entities must:
- Monitor their customers for inclusion on international sanctions lists
- Freeze funds and economic resources if necessary
This is a critical step in preventing the facilitation of illicit activities and ensuring that financial institutions do not inadvertently support malicious actors.
Consequences of Non-Compliance
The Central Bank of Iceland has emphasized the importance of complying with these regulations, warning that failure to do so can result in serious consequences, including:
- Fines
- Imprisonment
The bank has also highlighted the need for obliged entities to assess individual cases rather than precluding specific groups from accessing financial services.
Dual-Use Products and International Sanctions
The trade in dual-use products, which are goods and technologies that have both civilian and military applications, is strictly regulated. It is prohibited to engage in any activities that contravene international sanctions.
Challenges Faced by Refugees and Asylum Seekers
A report from the European Banking Authority (EBA) highlights the challenges faced by refugees and asylum seekers in accessing basic financial services. This is due to their inability to present the documents required for traditional due diligence.
Resources for Compliance
To aid in understanding the implementation of restrictive measures in Iceland due to Russia’s military operations in Ukraine, the Ministry for Foreign Affairs has created a website providing summarized information.
Additionally, the following resources are available:
- Educational material from the Steering Group on international sanctions (Icelandic): A comprehensive guide to international sanctions and their implementation.
- The Financial Supervisory Authority’s guidelines regarding the monitoring of customers on international sanctions lists and the freezing of funds and economic resources (Icelandic): A detailed guide to the regulations and requirements for obliged entities.
- United Nations list: A list of individuals and entities subject to international sanctions.
- Icelandic Government’s list (Icelandic): A list of individuals and entities subject to Icelandic sanctions.
- European Union’s list: A list of individuals and entities subject to EU sanctions.
Conclusion
Obliged entities must be vigilant in monitoring their customers for inclusion on international sanctions lists and freezing funds and economic resources if necessary. Failure to comply with these regulations can result in serious consequences, including fines or imprisonment. It is essential to understand the importance of compliance with international sanctions to maintain peace and security globally.