Anti-Terrorism Restrictions on Iceland Bank Lifted in the UK Skip to content

Anti-Terrorism Restrictions on Iceland Bank Lifted in the UK

The restrictions on Landsbanki in the UK, established through anti-terrorism legislation after the collapse of the Icelandic banking system in October 2008, will be lifted this week following the agreement on the bank’s online unit Icesave.

The headquarters of Landsbanki in Reykjavík. Copyright: Icelandic Photo Agency.

British and Dutch authorities agreed earlier this month to provide the Icelandic state with loans to honor its obligations towards the Icesave depositors in their countries.

According to Fréttabladid, the British government has formally announced that the restrictions will be lifted following a decision made by the UK parliament to that end. The announcement was made even though Iceland’s Althingi parliament has yet to accept the Icesave agreement.

October 8, two days after emergency legislation was established in Iceland to prevent the savings of Icelandic depositors from being lost in the banking collapse, the British government invoked the Anti-Terrorism, Crime and Security Act 2001 to freeze the assets of Landsbanki in the UK.

The implementation of the legislation, which has earlier been used against states like North Korea and organizations like al-Qaida, was harshly criticized by the Icelandic government, Icelandic citizens and also the UK parliament.

Click here to read more about the anti-terrorism legislation and here to read more about the Icesave agreement.

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