June 23, 2024

Could It Be Said That Iceland’s Financial Sector Is Corrupt?

There is no doubt that Iceland has made great efforts in recent years to combat financial wrongdoing and promote openness. Having said that, it is essential to keep in mind that there is no nation on earth that is totally devoid of corruption. 

Iceland experienced a severe economic crisis in 2008, which led to a widespread loss of faith in the nation’s various financial institutions. In the wake of the crisis, Iceland put into effect a number of changes designed to enhance the level of openness and responsibility present in the country’s financial system. These changes included more stringent legislation, increased monitoring, and improved efforts to combat money laundering. The disclosure of financial interests held by public officials is one of the measures that Iceland has implemented as part of an effort to increase transparency in public administration.

In international indices that evaluate levels of perceived corruption and the degree to which governments are transparent, Iceland consistently ranks high. Iceland is consistently ranked among the least corrupt countries in the world, according to the Corruption Perceptions Index compiled by Transparency International (the country was ranked 14th at the time this article was written). However, it is essential to keep in mind that these rankings are predicated on perceptions and may not accurately reflect the level of corruption that exists in any particular nation.

Even if Iceland has made strides in the fight against financial corruption, there are still many obstacles to overcome. As is the case in any nation, there have been incidents of financial mismanagement in Iceland. In order to address these issues, the relevant authorities are continuing their efforts to beef up anti-corruption measures, improve legislation, and tighten enforcement of existing laws.

Because of Iceland’s relatively low population, fighting financial corruption can be challenging. It appears that familiarity has a greater influence than professional work practices and that there is a lack of motivation to adhere to laws and regulations in many cases. The recent settlement with one of the three largest banks, which was responsible for the execution of tenders for a sizable portion of itself and violated the law in a very obvious manner during the execution, makes this abundantly clear. This brings many aspects of the condition that prevailed in Iceland before the financial crisis of 2008 back to our minds. Continuous monitoring and development are, as a matter of necessity, required in order to guarantee that the nation will stay on the right path.

Featured Image by Nattanan Kanchanaprat from Pixabay