{
 "jurisdiction_id": "IS",
 "jurisdiction": "Iceland",
 "url": "https://payments.gi/jurisdictions/iceland/",
 "generator": "render_jid v13.3.0",
 "date_modified": "2026-08-11",
 "schema_version": "world-payments-v1",
 "counts": {
  "modules": 14,
  "sourced_findings": 60,
  "source_register": 120
 },
 "modules": [
  {
   "code": "W1a",
   "name": "Licensing, Authorisation & Market Access",
   "confidence": "Confirmed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w1a-licensing-authorisation-market-access",
   "standing_position": "Iceland regulates payment services under Act No. 114/2021 on Payment Services (PSD2 transposition) and the Act on Financial Undertakings No. 161/2002, both administered by the Central Bank of Iceland (CBI), which absorbed the former standalone Financial Supervisory Authority (FME) in 2020. EEA passporting is the dominant market-access route for foreign PSPs; domestic licensing (EMI/PI/credit institution) remains available and has produced notable precedents such as Monerium's blockchain e-money licence.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "primary statute",
     "source": "https://fastpayments.worldbank.org/sites/default/files/2023-08/World%20Bank%20FPS_Iceland_EXP_Case%20Study%20(1).pdf",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "supervisory architecture",
     "source": "https://www.mondaq.com/guides/results/10/199/all/iceland-fintech",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "licensing procedure",
     "source": "https://cb.is/licenses/operating-licence-and-registration/operating-licences-of-credit-institutions/",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "passporting regime",
     "source": "https://payatlas.com/countries/iceland-is",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "EMI licence",
     "source": "https://monerium.com/press/20190614-emi/",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W1b",
   "name": "Conduct, Safeguarding & Financial Promotions",
   "confidence": "High",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w1b-conduct-safeguarding-financial-promotions",
   "standing_position": "Conduct-of-business and safeguarding obligations for Icelandic PSPs/EMIs sit within Act 114/2021's PSD2-derived framework, supplemented by GDPR-based data-protection duties and Consumer Agency oversight of general consumer legislation, with FME/CBI supervising financial-sector-specific conduct matters.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "data protection",
     "source": "https://www.mondaq.com/technology/1674410/fintech-comparative-guide",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "consumer supervision",
     "source": "https://government.is/topics/consumer-affairs/",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "e-identification/authentication",
     "source": "https://helpx.adobe.com/legal/esignatures/regulations/iceland.html",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "conduct/consent regime",
     "source": "https://www.islandsbanki.is/en/product/services/financial-technology-and-open-banking",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W2",
   "name": "Stablecoins & Digital Money",
   "confidence": "Assessed",
   "moved_this_cycle": true,
   "url": "https://payments.gi/jurisdictions/iceland/#w2-stablecoins-digital-money",
   "standing_position": "Iceland has no bespoke domestic stablecoin statute; crypto/DLT activity is lightly regulated and captured mainly via AML law. MiCA is not yet incorporated into the EEA Agreement for Iceland, leaving the existing EMI/e-money route (illustrated by Monerium's EURe token) as the practical basis for euro-pegged digital money.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "pending regulation",
     "source": "https://theccpress.com/eu-mica-crypto-regulation-takes-full-effect-july-1",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "AML overlay",
     "source": "https://www.mondaq.com/guides/results/10/199/all/iceland-fintech",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "e-money token",
     "source": "https://www.innreg.com/blog/mica-regulation-guide",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "EMI licence (blockchain)",
     "source": "https://monerium.com/press/20190614-emi/",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W3",
   "name": "Operational Resilience & Critical Infrastructure",
   "confidence": "Confirmed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w3-operational-resilience-critical-infrastructure",
   "standing_position": "CBI is sole supervisor of cyber/operational risk in Iceland's financial sector and has driven a multi-year core-payment-system migration alongside the SURF industry-coordination forum. DORA enters into force in Iceland on 1 November 2025, formalising ICT risk-management duties; the IMF has flagged acquirer dependence on Visa/Mastercard rails as a residual structural vulnerability.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "DORA transposition",
     "source": "https://www.mondaq.com/guides/results/10/199/all/iceland-fintech",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "supervisory mandate",
     "source": "https://www.elibrary.imf.org/view/journals/002/2023/280/article-A001-en.xml",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "coordination forum",
     "source": "https://www.elibrary.imf.org/view/journals/002/2023/280/article-A001-en.xml",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "infrastructure migration",
     "source": "https://www.elibrary.imf.org/view/journals/002/2023/280/article-A001-en.xml",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "concentration risk",
     "source": "https://www.elibrary.imf.org/view/journals/002/2023/280/article-A001-en.xml",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "sovereign resilience initiative",
     "source": "https://www.elibrary.imf.org/view/journals/002/2023/280/article-A001-en.xml",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W4",
   "name": "Scheme & Network Compliance",
   "confidence": "Assessed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w4-scheme-network-compliance",
   "standing_position": "No Iceland-specific interchange-fee or scheme statute distinct from general EEA-applicable rules was located; Icelandic acquirers and merchants are bound to PCI DSS and Visa/Mastercard scheme rules contractually via acquiring agreements.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "industry data-security standard",
     "source": "https://www.pcisecuritystandards.org/standards/",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "scheme rulebook enforcement",
     "source": "https://www.pxp.io/payments-glossary/card-scheme-rules",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W5",
   "name": "Payment Corridor Dynamics",
   "confidence": "Confirmed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w5-payment-corridor-dynamics",
   "standing_position": "Iceland's principal corridor infrastructure is SEPA (EUR credit transfers) plus SWIFT for non-EUR cross-border flows; the standing position shifted materially in 2026 with Iceland's accession to the ECB's TIPS instant-payments system, extending Eurosystem TARGET Services to Icelandic PSPs for the first time.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "instant-payments accession",
     "source": "https://www.ecb.europa.eu/press/pr/date/2026/html/ecb.pr260624_1~ce8e85127f.en.html",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "instant-payments accession",
     "source": "https://www.banque-france.fr/en/press-release/iceland-joins-tips-instant-payments",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "SEPA connectivity",
     "source": "https://enablebanking.com/docs/markets/is/",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "correspondent/SWIFT corridor",
     "source": "https://www.landsbankinn.is/en/international-payments",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W6",
   "name": "Industry Structure & Commercial Dynamics",
   "confidence": "Confirmed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w6-industry-structure-commercial-dynamics",
   "standing_position": "Iceland's financial sector is concentrated around three commercial banks and one investment bank; the acquiring/card-payments layer has passed almost entirely to foreign ownership (Teya, Rapyd) since 2020-2021, prompting explicit CBI concern, while a small but growing fintech/challenger-bank scene (indó, Kvika-affiliated Straumur) has emerged.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "market structure",
     "source": "https://www.trade.gov/country-commercial-guides/iceland-trade-financing",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "foreign-ownership shift",
     "source": "https://www.icelandreview.com/news/economy/icelands-central-bank-concerned-about-foreign-ownership-of-card-payment-systems/",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "M&A",
     "source": "https://www.paymentsdive.com/news/rapyd-buys-valitor-in-100m-deal/602775/",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "market entry",
     "source": "https://fintech.global/2022/02/16/icelands-first-challenger-bank-indo-launches-from-stealth/",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "sector growth metric",
     "source": "https://tracxn.com/d/explore/fintech-startups-in-iceland/__giCu69LvGbU7cFiY4hLvCUsoy5wGpWrpeE17IyrEWRc/companies",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "bank M&A/fintech investment",
     "source": "https://ifbusiness.uk/icelands-fintech-revolution/",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W7",
   "name": "Legal & Litigation",
   "confidence": "Confirmed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w7-legal-litigation",
   "standing_position": "The standing enforcement/litigation position centres on the CBI's first publicised sanctions/AML fine (Fossa fjárfestingarbanki, May 2025) and the long-running Landsbankinn v. Borgun/Teya damages litigation, which concluded in 2025 with the purchaser entities fully vindicated and Landsbankinn ordered to pay costs.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "enforcement action",
     "source": "https://blogs.duanemorris.com/europeansanctionsenforcement/2025/08/13/iceland-bank-fined-for-sanctions-compliance-failings/",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "civil litigation",
     "source": "https://www.visir.is/g/20252691312d/lands-bankinn-for-fylu-ferd-i-lands-rett-vegna-borgunar",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "civil litigation - final ruling",
     "source": "https://www.visir.is/g/20252726231d/borgunarmalinu-lokid-og-bankinn-faer-ekki-kronu",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "competition clearance",
     "source": "https://en.samkeppni.is/media/akvardanir-2025/Akvordun-9-2025.pdf",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W8",
   "name": "Merchant Acquiring & Risk",
   "confidence": "High",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w8-merchant-acquiring-risk",
   "standing_position": "Merchant acquiring in Iceland is concentrated among foreign-owned Teya and Rapyd plus Kvika's Straumur subsidiary and the three commercial banks; PCI DSS and scheme chargeback/dispute rules govern day-to-day operations, while the IMF has flagged reliance on Visa/Mastercard processing as an operational-resilience risk.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "market structure",
     "source": "https://en.samkeppni.is/media/akvardanir-2025/Akvordun-9-2025.pdf",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "resilience risk",
     "source": "https://www.elibrary.imf.org/view/journals/002/2023/280/article-A001-en.xml",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "acquiring partnership",
     "source": "https://ifbusiness.uk/icelands-fintech-revolution/",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "chargeback/dispute framework",
     "source": "https://www.pxp.io/payments-glossary/card-scheme-rules",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W9",
   "name": "Product Innovation & Market Development",
   "confidence": "Confirmed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w9-product-innovation-market-development",
   "standing_position": "The dominant current product-innovation story is Iceland's 2026 TIPS/Eurosystem accession, layered on an existing PSD2 open-banking build-out (sandboxes, API partnerships) and a CBI-led push to explore an independent domestic retail payment rail as a resilience hedge against card-network dependency.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "instant-payments infrastructure",
     "source": "https://www.ecb.europa.eu/press/pr/date/2026/html/ecb.pr260624_1~ce8e85127f.en.html",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "open banking API",
     "source": "https://enablebanking.com/docs/markets/is/",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "open banking sandbox/partnership",
     "source": "https://ifbusiness.uk/icelands-fintech-revolution/",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "product partnership",
     "source": "https://thepaypers.com/fintech/news/icelandic-neobank-indo-partners-with-enfuce",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "domestic rail development",
     "source": "https://www.elibrary.imf.org/view/journals/002/2023/280/article-A001-en.xml",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W10",
   "name": "Consumer Protection & APP Fraud",
   "confidence": "High",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w10-consumer-protection-app-fraud",
   "standing_position": "Consumer protection in Icelandic payments is split between the general Consumer Agency and the FME/CBI's financial-sector-specific oversight, with EEA-wide ECC-Net support for cross-border disputes; no dedicated mandatory APP-fraud reimbursement scheme comparable to the UK's was identified after search of CBI/FME consumer-facing material.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "consumer supervision architecture",
     "source": "https://government.is/topics/consumer-affairs/",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "cross-border redress network",
     "source": "https://www.eccnet.eu/consumer-rights/need-help/assistance-outside-eu-norway-or-iceland",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "consumer guidance route",
     "source": "https://island.is/en/consumer-advice",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "data-protection adjacent safeguard",
     "source": "https://www.mondaq.com/technology/1674410/fintech-comparative-guide",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W11",
   "name": "AML/CFT & Financial Crime",
   "confidence": "Confirmed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w11-aml-cft-financial-crime",
   "standing_position": "Sentinel.gi payments-context position: Iceland's AML/CFT regime rests on Act No. 140/2018 (5AMLD transposition), supervised for financial/payment/e-money institutions by the FSA within the CBI, with an independent FIU, and a recent FATF-recognised compliance upgrade; the FSA's May 2025 fine against Fossa fjárfestingarbanki is the most recent notable payments-context enforcement action.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "enforcement action",
     "source": "https://blogs.duanemorris.com/europeansanctionsenforcement/2025/08/13/iceland-bank-fined-for-sanctions-compliance-failings/",
     "source_url": null,
     "source_tier": "3",
     "retrieved_at": null
    },
    {
     "finding": "Iceland is a full FATF member (not MONEYVAL-assessed) with a modern AML Act, a dedicated Sanctions Act No. 64/2019, and a Beneficial Ownership Act No. 82/2019. AML/CFT supervision sits with the Central Bank of Iceland's Financial Supervisory Authority (FSA) and the Directorate of Internal Revenue for DNFBPs. As an EEA/EFTA state (not an EU member), Iceland incorporates EU AML directives into the EEA Agreement with a structural lag rather than being directly bound by EU regulations.",
     "instrument_type": "assessment",
     "source": "FIM (sentinel.gi) per-JID baseline profile — Iceland",
     "source_url": null,
     "source_tier": null,
     "retrieved_at": null
    },
    {
     "finding": "Gap: legal-gap",
     "instrument_type": "gap",
     "source": "FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-003)",
     "source_url": null,
     "source_tier": null,
     "retrieved_at": null
    },
    {
     "finding": "Gap: enforcement-absence",
     "instrument_type": "gap",
     "source": "FIM (sentinel.gi) gaps_register_cumulative (issue FIM-BASE-GAP-004)",
     "source_url": null,
     "source_tier": null,
     "retrieved_at": null
    },
    {
     "finding": "Sanctions: OFSI divergence",
     "instrument_type": "sanctions_change",
     "source": "FIM (sentinel.gi) sanctions_change_register (issue FIM-BASE-SANC-003)",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": "Enforcement: Government of Iceland (alignment under Sanctions Act No. 64/2019) / EU Council — 5 persons and 4 entities undermining Ukraine's territorial integrity",
     "instrument_type": "enforcement_action",
     "source": "FIM (sentinel.gi) enforcement_action_register (issue FIM-BASE-ENF-003)",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W12",
   "name": "Correspondent Banking, Settlement & Access",
   "confidence": "Confirmed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w12-correspondent-banking-settlement-access",
   "standing_position": "CBI operates Iceland's RTGS/interbank settlement system under an explicit statutory mandate, Nasdaq CSD provides CSDR-licensed securities settlement with ISK legs settling in CBI's RTGS and EUR legs integrated into pan-European T2S, and Iceland's 2026 TIPS accession newly extends Eurosystem central-bank-money settlement access to Icelandic PSPs; non-SEPA cross-border access still relies on SWIFT correspondent banking.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "statutory settlement mandate",
     "source": "https://fastpayments.worldbank.org/sites/default/files/2023-08/World%20Bank%20FPS_Iceland_EXP_Case%20Study%20(1).pdf",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "CSD settlement",
     "source": "https://en.wikipedia.org/wiki/Nasdaq_CSD",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "central-bank-money settlement",
     "source": "https://nasdaqcsd.com/iceland/en/settlement-services/",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "settlement access expansion",
     "source": "https://www.ecb.europa.eu/press/pr/date/2026/html/ecb.pr260624_1~ce8e85127f.en.html",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    },
    {
     "finding": null,
     "instrument_type": "correspondent banking / reporting",
     "source": "https://www.landsbankinn.is/en/international-payments",
     "source_url": null,
     "source_tier": "2",
     "retrieved_at": null
    }
   ]
  },
  {
   "code": "W13",
   "name": "Commercial Intelligence & Fintech",
   "confidence": "Confirmed",
   "moved_this_cycle": false,
   "url": "https://payments.gi/jurisdictions/iceland/#w13-commercial-intelligence-fintech",
   "standing_position": "Within the trailing 12-month baseline window (2025-07-04 to 2026-07-04), the standout commercial/infrastructure event is Iceland's formal accession to the ECB's TIPS instant-payments system; no other material M&A or funding events specific to Icelandic payments were confirmed within the window after search.",
   "findings": [
    {
     "finding": null,
     "instrument_type": "commercial_event: infrastructure/product",
     "source": "https://www.ecb.europa.eu/press/pr/date/2026/html/ecb.pr260624_1~ce8e85127f.en.html",
     "source_url": null,
     "source_tier": "1",
     "retrieved_at": null
    }
   ]
  }
 ]
}