Fjármálaeftirliti

Fjármálaeftirliti refers to financial supervision or financial regulatory authority in Icelandic. It is the governmental body responsible for overseeing and regulating the financial sector of Iceland. Its primary mandate is to ensure the stability and integrity of the financial markets, protect consumers and investors, and promote fair competition within the financial industry.

The scope of Fjármálaeftirliti's responsibilities typically includes supervision of banks, credit institutions, investment firms, insurance companies, pension funds, and other financial service providers operating in Iceland. This supervision involves monitoring their financial health, risk management practices, and compliance with relevant laws and regulations. The authority has the power to conduct inspections, issue licenses, set capital requirements, and impose sanctions on entities that fail to meet their obligations.

In addition to prudential supervision, Fjármálaeftirliti also plays a role in combating financial crime, such as money laundering and terrorist financing, by enforcing anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations. The agency often works in close cooperation with other national and international regulatory bodies to address cross-border financial risks and maintain a robust financial system. Its objective is to foster confidence in Iceland's financial sector and contribute to its overall economic stability.