On 6th April, FATF released its mutual evaluation report on Iceland’s measures to fight money laundering and the financing of terrorism and proliferation which concluded that Iceland needs better internal co-operation and co-ordination to effectively tackle money laundering and terrorist financing.  It says that between 2008 and 2015, Iceland demonstrated a high level of co-operation and coordination as they focused almost exclusively on the financial crimes and complex cases surrounding the 2008 banking collapse. But, this did not extend to AML/CFT, which has not received sufficient attention as a result.  It also says that Icelandic authorities have a fragmented understanding of AML/CFT risks.  With the exception of the three large commercial banks in Iceland, the financial sector and non-financial businesses and professions have a poor understanding of the money laundering or terrorist financing risks to which they are exposed. These private sector entities have limited awareness of their AML/CFT obligations and report very few suspicious transactions in light of the risks present.   FATF said that Iceland must use its ability to coordinate domestic authorities and put practices in place to strengthen its efforts to tackle money laundering and terrorist financing and says that Iceland indicated its willingness to do so.


Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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