Laws and Regulations

Laws and Regulations

Capital controls which were introduced in November 2008 have been largely lifted as of 14 March 2017. The effect is that cross border transactions with ISK are now allowed. A few restrictions remain:

  • Derivatives trading for other purpose than hedging
  • FX transactions between residents and non-residents carried out without the intermediation of a financial undertaking
  • In certain instances foreign denominated lending from residents to non-residents.

Funds which have been defined as “offshore” are still restricted. New inflow of capital is allowed, but the Central Bank of Iceland has put in place special reserve requirements for certain investments, namely:

  • Electronically registered bonds and bills in ISK
  • Deposits that pay an annual interest of 3% or more
  • Unit share certificates of funds that invest in electronically registered bonds or bills issued in ISK or that own ISK deposits, if cash and depots bearing annual interest of 3% or more constitute 10% or more of the funds’ assets.
  • Equity of a company that is used, directly or indirectly, for the above-described investments

The links below provide thorough information on these rules. If you have any questions please contact fi@islandsbanki.is.

Oher links of interest

Netspjall