Iceland’s FSA Investigates Breach of Currency Restrictions Skip to content

Iceland’s FSA Investigates Breach of Currency Restrictions

The Icelandic Financial Supervisory Authority (FME) is investigating six cases due to suspicion that the currency restrictions that were established in November 2008 were breached. The currency restrictions were tightened this month.

The Icelandic króna. Copyright: Icelandic Photo Agency.

According to laws on currency trade, the FME has the authority to issue administrative fines in such cases, reach an agreement with those involved or send these cases to the police or the office of the special prosecutor, Fréttabladid reports.

Violations of the laws on currency trade do not undergo an official investigation unless the FME files charges. According to information from the FME, either the Central Bank or the police send cases to the FME for investigation.

Although only six cases have been sent to the FME so far, the speech of Central Bank Governor Svein Harald Oeygard at the bank’s annual general meeting last week indicates that the number of cases will increase.

Oeygard said that the bank has further tightened supervision to ensure that regulations are being followed and that a new supervision unit is in the process of being established at the bank.

It is a matter of concern that the Icelandic króna continues to depreciate despite the currency restrictions.

Click here to read more about the development of the ISK and here to read more about the Central Bank’s annual meeting.

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