Iceland: Financial Sector Assessment Program-Technical Note on Anti-Money Laundering/Combating the Financing of Terrorism
IMF Staff Country Reports, July 28, 2023
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- Iceland: Financial Sector Assessment Program-Technical Note on Anti-Money Laundering/Combating the Financing of Terrorism
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Bibliographic details
- Published: July 28, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400248238.002
Overview
- This technical note analyses anti-money laundering/combating the financing of terrorism (AML/CFT) in Iceland.
- Iceland’s banking sector is comparatively small, and the geographical reach of cross-border payments activity is limited.
Findings on AML/CFT supervision in the banking sector
- The AML/CFT supervisory understanding and assessment of ML and terrorism financing (TF) risks in the banking sector has improved in recent years.
- Further refinements to the supervisory risk assessment tools and increased data collection will enhance the accuracy of the authorities’ focus for AML/CFT risk-based supervision of banks.
- In some instances, the pace of completion of inspections has been slow.
Virtual asset service providers (VASP)
- Iceland has taken significant steps to establish a registration regime for virtual asset service providers (VASP) established in or operating in the country.
- Efforts should continue to detect unlicensed activities.
Supervisory practice and inspection approach
- Going forward, a continued focus on thematic inspections would be a welcome.
- To drive meaningful change in the levels of AML/CFT compliance and the effectiveness of AML/CFT controls in banks (in particular, enterprise ML/TF risk assessment, customer due diligence, and suspicious transaction reporting), an enhanced supervisory presence through more frequent onsite activities and an increased pace in the completion of inspections would be beneficial.
Key descriptive metadata (as presented on the page)
- Publication date: July 28, 2023
- Series: Country Report No. 2023/277
- Issue: 277
- Pages: 17
- DOI: https://doi.org/10.5089/9798400248238.002
- ISBN: 9798400248238
- ISSN: 1934-7685
- Subjects and keywords include: Anti-money laundering and combating the financing of terrorism (AML/CFT); Commercial banks; Correspondent banking; Crime; Financial Sector Assessment Program; Financial sector policy and analysis; Financial services; International organization; Monetary policy; Terrorism financing; Baltics; FSAP's finding; supervision of bank; swift data; TF risk assessment; TF risk assessment model
IMF Staff Country Reports — Iceland: Financial Sector Assessment Program-Technical Note on Anti-Money Laundering/Combating the Financing of Terrorism (July 28, 2023).
Content in this bundle
- Executive Summary