Since the first evaluation, the most significant amendments have been the ratification in 1997 of the Vienna and Strasbourg Conventions, and the amendment of the Penal Code to extend the money laundering offence to the proceeds of all crimes contained in that Code, including major tax crimes. Money laundering was also made a separate criminal offence under the Penal Code. Iceland has modified its domestic legislation in important ways since the last mutual evaluation, and emphasis must now be placed on effective implementation. The money laundering offence now applies to a wide range of predicate crimes, but some refinements could make it even more effective. Thus consideration could be given to widening the actus reus of the offence, and to the sentencing powers which are held by the court.
Confiscation is treated as a low priority issue and the results obtained to date are minimal.
Iceland should review the provisions concerning confiscation, provisional measures and related powers of investigation, and implement changes where appropriate, including any necessary changes to law enforcement structures. As regards mutual legal assistance mechanisms, they appear to have a broad application, and allow for a wide range of assistance, though experience is very limited to date. The unit for serious tax and economic offences at the National Commissioner for Police is playing an increasingly important role in the Icelandic anti-money laundering system. In addition to investigating economic crime, it acts as the FIU and receives the STR for analysis and investigation. So far results have been very limited, and the Unit has managed with limited resources, however if it is to fully develop the functions of an FIU, it will need increased resources.