Iceland Country Summary

FATF Status

Iceland is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Iceland was undertaken in 2021. According to that Evaluation, Iceland was deemed Compliant for 22 and Largely Compliant for 16 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 1 of the Effectiveness & Technical Compliance ratings.

Iceland experiences isolated incidents of corruption, which are not seen as significant barriers to foreign investment or governance. While the country has established various measures to combat corruption, including a Code of Conduct for government staff and participation in international anti-corruption conventions, there are ongoing challenges, particularly in addressing organized crime, which includes drug trafficking and cybercrime, often involving both domestic and foreign groups.

Iceland's economy is characterized by its advanced structure, primarily driven by fisheries, tourism, and aluminum production. The country has seen a significant increase in U.S. investments, particularly in the aluminum sector and tourism, with Americans constituting a substantial portion of its tourist population. The Icelandic government actively promotes foreign direct investment (FDI) through initiatives like "Invest in Iceland," which aims to attract investors by offering incentives in key sectors such as energy, innovation, and life sciences, while also addressing the balance between economic growth and environmental sustainability.