Íslandsbanki is a (non-listed) public limited company and is managed in accordance with applicable Icelandic statutory provisions which inform its corporate governance framework. The two main laws that dictate the bank's activities are the Icelandic Act on Public Limited Companies (No. 2/1995) and the Icelandic Act on Financial Undertakings (No. 161/2002).
Act respecting Public Limited Companies No. 2/1995 (the Companies Act)
The Icelandic Act respecting Public Limited Companies is largely based on EU company law. The act contains rules on company incorporation, share capital, governing bodies, annual general meetings, auditing and management's liability.
Icelandic Act on Financial Undertakings No. 161/2002 (the Financial Undertakings Act)
As a financial institution Íslandsbanki is subject to the general Icelandic law on financial undertakings. The Icelandic Financial Supervisory Authority (FME) is the regulating body of financial institutions in Iceland. The FME issues operating licenses and supervises financial institutions to make sure they comply with statutory financial provisions and good business practices.
The Financial Undertakings Act contains rules on operating licence prerequisites, shares and share capital, auditing, risk management and other internal controls and management competency.
Act on Securities Transactions No. 108/2007:
The legislation is based on the European Union's Markets in Financial Instruments Directive (MiFID). This directive entails extensive changes in rules on securities trading in the European Economic Area (EEA), which have an impact on relations between financial undertakings and their clients.
Act on Measures against Money Laundering and Terrorist Financing:
Anti Money Laundering
Íslandsbanki is committed to the prevention of money laundering and the financing of terrorism. In this regard the Bank has set for itself rules that are based on and in strictest compliance with Act no. 64/2006 on Measures to Prevent Money Laundering and Terrorist Financing, as subsequently amended, and guidelines of the Financial Supervisory Authority-Iceland (FME) based on Directive 2006/60/EC. These rules mandate, inter alia, identity verification whenever the Bank enters into “a permanent contractual (business) relationship” with a new customer. Such verification shall involve identifying and verifying the customer’s identity using information or data from a reliable and independent source.
Last updated 9 April 2015.