Currency Fraud Investigated in Iceland Skip to content

Currency Fraud Investigated in Iceland

The Financial Supervisory Authority (FME) is investigating the cases of eight export companies due to suspicion on violations of laws and regulations on currency trade established after the collapse of the banking system.

Photo by Páll Stefánsson.

According to Fréttabladid, this investigation will be expedited. The matters involve large amounts of money, and the sanctions for violations are strict.

The Central Bank is the supervisory body on whether currency restrictions are being observed. In response to a request from Fréttabladid on the arrangement of the investigation, the following answer was received:

“[The Central Bank] monitors that all parties comply with the law, but the FME investigates cases reported to it by the Central Bank. The aluminum companies have not been investigated especially, but they will be. The fishing companies are under investigation.”

According to the Central Bank, it is being investigated whether the currency collection rate is lower than it should be from these industries.

CEO of Alcoa in Iceland Tómas Sigurdsson denied that Alcoa had been involved in unnatural currency trade. “We operate according to an investment agreement and it includes certain regulations on our currency trade. All of our trade is in cooperation with the Central Bank.”

The currency restrictions were tightened on April 1, 2009, to prevent export companies from eluding the deposit obligation on currency, at which point a double market with the Icelandic króna had been created.

“Those who elude the regulations on currency restrictions, legally or illegally, contribute to the depreciation of the króna and, thereby, directly or indirectly, increase the cost for all Icelanders,” a government statement explained the following day.

Click here to read more about the currency restrictions.

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