Økonomisk Kriminalitet Nordiske Perspektiver - Scandinavian ...

Snorri Örn Árnason
5. ECONOMIC CRIME AND ECONOMIC CRISIS IN ICELAND: A
MOMENT FOR REGULATORY REFORM
ABSTRACT
In the midst of a global economic recession the Icelandic economy is in crisis after
a series of bank failures. As suspicions of economic criminality have mounted,
investigations of numerous cases connected to the banking collapse have been
launched. This paper examines the development of the Icelandic business
environment and takes a look at recent trends in economic crimes in Iceland. In a
short period in which Iceland entered the European Economic Area, great
changes took place and power shifted from the political arena to the corporate
and financial sector. The speed with which these developments took place, created
unclear guidelines and left the regulatory agencies struggling, facilitating poor
corporate culture. The paper analyses the role of different regulatory agencies and
the function of the system as a whole. From the privatization of the banks in 2002,
deregulation made it difficult for the regulatory agencies to sustain a firm
supervision of the markets. Lack of co-operation between different authorities
further hampered investigations and prosecutions of economic crimes. This paper
concludes with proposals for crime preventative measures and improvements to
the regulatory system in Iceland, taking a look at successful programs in other
Scandinavian countries.
KEYWORDS
Banking failure, Economic crime, corporate crime, deregulation, grey areas, reform
99