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

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

Iceland has been in an enhanced follow-up process following the adoption of its Mutual Evaluation in 2018.

1 - Assessing risk & applying risk-based approach, from partially compliant to compliant
2 - National cooperation and coordination, from partially compliant to compliant
6 - Targeted financial sanctions – terrorism & terrorist financing, from partially compliant to compliant
7 - Targeted financial sanctions - proliferation, from partially compliant to compliant
8 - Non-profit organisations,from non-compliant to largely compliant
24 - Transparency & Beneficial ownership of legal persons,from partially compliant to largely compliant
25 - Transparency & Beneficial ownership of legal arrangements, from partially compliant to compliant
26 - Regulation and supervision of financial institutions,from partially compliant to largely compliant
32 - Cash couriers, from partially compliant to compliant
34 - Guidance and feedback, from partially compliant to compliant

The report also looks at whether Iceland’s measures meet the requirements of FATF Recommendation 15 (New technologies), which changed since their 2019 progress report. The FATF agreed to downgrade the rating to partially compliant. Iceland has addressed some of the deficiencies identified and met some of the new criteria of R.15, but moderate deficiencies remain.

Today, Iceland is compliant on 21 of the 40 Recommendations and largely compliant on 16 of them. It remains partially compliant on 3 Recommendations.

Iceland will continue to report back to FATF on its progress.

Follow-Up Report Iceland 2019

Mutual Evaluation Report of Iceland - 2018