The FATF has published Iceland’s 2nd Enhanced Follow-Up Report. The report evaluates Iceland’s progress in addressing the technical compliance deficiencies identified in its Mutual Evaluation Report adopted in 2018. The report also assesses Iceland’s progress in implementing new requirements that the FATF has added since the adoption of the country’s first Enhanced Follow-Up Report.
After its assessment, the FATF has re-rated Iceland on 10 recommendations, including assessing risk and applying risk-based approach, national cooperation and coordination, transparency and beneficial ownership of legal persons, regulation and supervision of financial institutions, etc.
In light of the new requirements under recommendation 15 (New technologies), the FATF has downgraded Iceland’s rating on this recommendation to partially compliant. This is because while the country has complied with some of the new requirements, there are still moderate deficiencies. Overall, Iceland is now compliant on 21 and largely compliant on 16 of the 40 recommendations. It is still partially compliant on 3 recommendations.
Source: FATF