Financial Intelligence Unit
Terrorist Financing
On January 1, 2019, the Icelandic parliament, Althingi, approved a new comprehensive law on measures against money laundering and terrorist financing. The aim of the law is to prevent money laundering and terrorist financing by requiring parties who engage in activities that could be used for money laundering or terrorist financing to know the identity of their customers and their activities and report to the competent authorities if they suspect or become aware of such illegal activities.
What is terrorist financing?
In law no. 140/2018 on measures against money laundering and terrorist financing, terrorist financing is defined:
The acquisition of funds, whether directly or indirectly, for that purpose or with the knowledge that they are to be used in whole or in part to commit a crime punishable by Articles 100a to 100c of the Penal Code.
Penalties
The financing of terrorism is punishable by up to 10 years in prison under Article 101b of the Penal Code.