Iceland's progress in strengthening measures to tackle money laundering and terrorist financing

Publication details

Language

English

Country

Iceland

6 September 2021 - Since the 2018 assessment of Iceland’s measures to tackle money laundering and terrorist financing, and its 2019 and 2020 follow-up reports, the country has taken a number of actions to strengthen its framework.

Iceland has been in an enhanced follow-up process following the adoption of its mutual evaluation in 2018, and was subject to increased monitoring between October 2019 and October 2020.

In line with the FATF Procedures for mutual evaluations, the country has reported back to the FATF on the action it has taken since its last follow-up report, in November 2020. Consequently, to reflect Iceland’s progress, the FATF has now re-rated the country compliant on Regulation and supervision of designated non-financial businesses and professions (Recommendation 28). The country was originally rated non-compliant, then re-rated and maintained at partially compliant in its 1st and 2nd follow-up reports. 

Today, Iceland is compliant on 22 of the 40 Recommendations and largely compliant on 16 of them. It remains partially compliant on 2 Recommendations.

Iceland will remain in enhanced follow-up and will continue to report back to FATF on its progress.

Follow-Up Report Iceland - 2021

Filename
Follow-Up-Report-Iceland-2021.pdf
Size
851 KB
Format
application/pdf
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Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

Iceland Follow-Up Report - 2021

R.1 - Assessing risk & applying risk-based approach
C
R.2 - National cooperation and coordination
C
R.3 - Money laundering offence
C
R.4 - Confiscation and provisional measures
LC
R.5 - Terrorist financing offence
LC
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
C
R.7 - Targeted financial sanctions related to proliferation
C
R.8 - Non-profit organisations
LC
R.9 - Financial institution secrecy laws
C
R.10 - Customer due diligence
C
R.11 - Record keeping
C
R.12 - Politically exposed persons
C
R.13 - Correspondent banking
PC
R.14 - Money or value transfer services
LC
R.15 - New technologies
PC
R.16 - Wire transfers
C
R.17 - Reliance on third parties
C
R.18 - Internal controls and foreign branches and subsidiaries
LC
R.19 - Higher-risk countries
C
R.20 - Reporting of suspicious transactions
C
R.21 - Tipping-off and confidentiality
C
R.22 - DNFBPs: Customer due diligence
C
R.23 - DNFBPs: Other measures
LC
R.24 - Transparency and beneficial ownership of legal persons
LC
R.25 - Transparency and beneficial ownership of legal arrangements
C
R.26 - Regulation and supervision of financial institutions
LC
R.27 - Powers of supervisors
C
R.28 - Regulation and supervision of DNFBPs
C
R.29 - Financial intelligence units
LC
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
C
R.32 - Cash couriers
C
R.33 - Statistics
LC
R.34 - Guidance and feedback
C
R.35- Sanctions
LC
R.36 - International instruments
LC
R.37 - Mutual legal assistance
LC
R.38 - Mutual legal assistance: freezing and confiscation
LC
R.39 - Extradition
LC
R.40 - Other forms of international cooperation
LC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

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