Anti-Corruption Policy
10 February 2011
Anti-Corruption and Icelandic Legal Framework
Corruption as a criminal offence
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Active and passive bribery of Icelandic public officials constitutes a
criminal offence, cf. GPCs Art. 109(1) and 128(1)
Active and passive bribery of foreign public officials is a criminal
offence, cf. GPCs Art. 109(2) and 128(2)
Active and passive bribery in the private business sector is a
criminal offence, cf. GPCs Art. 264 a
Active and passive trading in influence is punishable, cf. GPCs Art.
109(2)(3)
Legal persons can be held liable, cf. GPCs chapter II A and Act on
the Criminal Liability of Legal Persons for Bribery and Terrorism,
No. 144/1998
Anti-Corruption and Icelandic Legal Framework (2)
Corruption as a criminal offence (2)
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The proceeds of crime can be confiscated, cf. GPCs chapter VII A
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Gains can be estimated when it is not possible to demonstrate their
monetary value, cf. GPCs Art. 69(1)
Onus of proof can be reversed under certain circumstances
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The offence is of such a type as to result in substantial gains and
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it is punishable by at least 6 years’ imprisonment
Confiscation from a third party possible under certain circumstances
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From present or former spouse or
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From a legal person where the individual concerned, alone or
together with his or her immediate family, holds a controlling
position
Disqualification measures for natural persons
Anti-Corruption and Icelandic Legal Framework (3)
Other legislative Acts
• Act on Measures Against Money Laundering and Terrorist
Financing, No. 64/2006
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The Act imposes on parties engaging in activities which may be used
for the purposes of money laundering and terrorist financing the
obligation to obtain knowledge of their customers and their business
activities and to report to the competent authorities any knowledge
of such illegal activities.
Act on the Criminal Liability of Legal Persons for Bribery and
Terrorism, No. 144/1998
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The Act stipulates that legal persons can be held liable for bribery
and terrorist offences in accordance with chapter II A of the GPC.
The offences are subject to fines.
Anti-Corruption and Icelandic Legal Framework (4)
Other legislative Acts (2)
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Act on the Finances of Political Associations, No. 162/2006
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The Act stipulates which information from the accounts of political
organizations and candidates shall be made public
Rules on donations from individuals and legal entities to candidates
and on reporting requirement include both political organizations
and candidates in presidential elections.
Maximum donation of ISK 400.000
The maximum amount for donations provided from individuals and
legal entities in direct relation to the establishment of a political
organization can be twice the maximum donation according to the
Act.
Names of individuals contributing more than ISK 200.000 are to be
made public
Anti-Corruption and Icelandic Legal Framework (4)
Other legislative Acts (3)
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Act on the Finances of Political Associations, No. 162/2006 (2)
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Donations received from unknown donors must revert to the
Treasury.
The Icelandic National Audit Office is authorized to request
documents from political organizations and candidates, in order to
ascertain that their donations and election campaign expenses are in
compliance with the Act.
Treasury allocations to political organizations are conditional upon
the organization's prior fulfillment of its statutory duty to disclose
information to the Icelandic National Audit Office.
Criminal liability under certain circumstances
Anti-Corruption and Icelandic Legal Framework (5)
Other legislative Acts (4)
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Act on Public Procurement, No. 84/2007
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Governments Employee Act, No. 70/1996
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Art. 47 of the Act stipulates that several criminal offences, including
corruption, lead to exclusion from public procurement.
Sets out the basis for Code of Ethics for public officials, employees of
Althingi and employees of the Courts.
Art. 13 a stipulates that a public employee that notifies the relevant
authorities of a violation of law or code of ethics shall not suffer in
any way for doing so.
Act on the Government Offices of Iceland, No. 70/1996
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Sets out the basis for Code of Ethics for the Government Offices
EU Instruments
Convention on the Protection of the European
Communities’ Financial Interests and its Protocols
Iceland is not a member to the EU
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Communities’ financial interests in particular.
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criminal offences according to the GPC and confiscation
measures are in place.
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Legal measures needed in Iceland in order to ensure
compatibility with the Convention and its protocols.
EU Instruments (2)
Legal measures needed to ensure compatibility
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Amendments to the General Penal Code
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Jurisdiction
Criminal liability for heads of businesses
EU Instruments (3)
Convention on the Fight Against Corruption Involving
Officials of the European Communities or Officials of
Member States of the EU
Iceland is not a member to the EU
• Both active and passive bribery of public officials (Icelandic and
foreign) are punishable according to the GPC and confiscation
measures are in place.
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Legal measures are needed in Iceland in order to ensure
compatibility with the Convention.
EU Instruments (4)
The legal measures needed to ensure compatibility with
the Convention:
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Amendments to the General Penal Code
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EU officials regarded as falling under the term public official
Jurisdiction
Criminal liability for heads of businesses
EU Instruments (6)
Council Decision 2008/852/JHA on a contact-point network against
corruption
• No legislative measures are needed for Iceland to be able to
participate in the contact-point network
• Iceland would be able to participate directly upon accession
EU Instruments (5)
Council Framework Decision 2003/568/JHA on Combating
Corruption in the Private Sector
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Active and Passive bribery in the private sector is punishable
according to the GPC, cf. Art. 264 a
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Non-profit organizations do not fall under the scope of the provision
Instigating, aiding and abetting is punishable according to the GPC,
cf. Art. 22
Legal persons can be held liable, cf. Chapter II A of the GPC and Act
on the Criminal Liability of Legal Persons for Bribery and Terrorism
Legal measures are necessary in order to ensure compatibility
between the GPC and the Framework Decision
Public Procurement
Directives 2004/17/EC and 2004/18/EC
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Iceland has implemented Directive 2007/17/EC as part of the EEA
agreement.
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Iceland has implemented Directive 2007/18/EC as part of the EEA
agreement.
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Act on Public Procurement, No. 84/2007.
Regulation No. 755/2007, on the procurement procedures of entities
operating in the water, energy, transport and postal services sector,
with later amendments.
Act on Public Procurement, No. 84/2007.
According to Art. 47 of the Act, corruption is one of the criminal
offences that lead to exclusion from public procurement.
Money Laundering
Council Directive 2005/60/EC on Prevention of the use of
the Financial System for the purpose of money laundering
and terrorist financing
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Iceland has implemented Directive 2005/60/EC as part of the EEA
agreement
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Act on Measures Against Money Laundering and Terrorist Financing,
No. 64/2006
Icelandic legislation is fully compliant with the directive
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Thus no legal amendments are needed
International Instruments
International conventions ratified by Iceland
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COE Criminal Law Convention Against Corruption
UN Convention Against Transnational Organized Crime
OECD Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions
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Preparations for accession to the UN Convention Against Corruption are in its final
stages
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Legal amendments have been made
Accession documents expected to be sent in February 2011
International conventions signed by Iceland
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COE Civil Law Convention Against Corruption
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Is under revision as regards possible legal amendments
COE Additional Protocol to Council of Europe’s Criminal Law Convention Against
Corruption
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Legislative amendments are being drafted