Financial Crime World

Iceland Takes a Tough Stand on Corruption: Bribery of Foreign Officials Now a Punishable Offense

In its ongoing efforts to strengthen anti-corruption laws, Iceland has amended its legislation to criminalize the bribery of foreign public officials. This move demonstrates the country’s commitment to combating corruption and upholding good governance.

The OECD Convention on Combating Bribery of Foreign Public Officials

Iceland ratified the OECD Convention in 1999, which entered into force in the country. The convention aims to prevent attempts to bribe foreign public officials to fail to perform their duties for personal gain. By doing so, it promotes good governance and economic development by maintaining international competitive conditions.

Forms of Bribery

In Iceland, bribery can take various forms, including:

  • Gifts
  • Money
  • Other advantages to which the public official is not entitled

According to Article 109 of the General Penal Code No 19/1940, offenders can face a prison sentence of up to four years.

Who is Considered a “Foreign Public Official”?

The term “foreign public official” applies not only to government officials but also to:

  • Members of parliament
  • Jurors
  • Employees of public international organizations
  • Members of international courts
  • Others

Icelandic authorities are authorized to prosecute those who violate this provision, even if the offense takes place abroad.

Consequences for Offenders

Offenders may face:

  • Prison sentences up to six years’ imprisonment
  • Monetary sanctions
  • Sanctions for companies and other legal persons in Iceland attempting to bribe foreign public officials

Reporting Bribery

Foreign public officials who accept bribes can face the same penalties as their Icelandic counterparts. Companies or individuals who become aware of an act of bribery abroad are advised to:

  • Report the incident to Iceland’s diplomatic missions
  • Contact the Icelandic police authorities
  • Address indications and enquiries to the Office of the District Public Prosecutor responsible for investigating economic crimes

By strengthening its anti-corruption laws, Iceland demonstrates its commitment to following through with international conventions and encourages companies and individuals to familiarize themselves with applicable laws and good practices.