Iceland banks are normally very accommodating of American business customers and offer various incentives for foreign banking accounts. Understanding banks in Iceland laws and regulations give you an advantage when selecting a bank to handle your foreign investments or off-shore banking. Many Americans have chosen to use Iceland for offshore banking because of its greater privacy concerning accounts, low taxes and easy access to deposits. However, the Icelandic banking industry was thrown into crisis during the international credit crunch of 2008 and the Central Bank of Iceland had to take over the country's three leading banks. Check the latest financial news for updates on the status of any bank in Iceland.

If you are considering Iceland for international banking, these regulations and polices will help you decide if an Iceland bank is right for you. There are three areas you should cover when learning about banks in Iceland laws and regulations.

1. Read basic banking polices for international banking in Iceland.

2. Understand governmental acts for Iceland banking.

3. Learn foreign investment and exchange policies for international banking in Iceland.

Action Steps
The best contacts and resources to help you get it done

Locate basic banking polices for international banking in Iceland

Basic policies and information on banking in Iceland for Americans can help you understand the common procedures for these banks. Also, learning the basic banking policies of international banking gives you an overview of basic policies that affect most investors. This will also give you the knowledge needed to decide if Iceland is the country you wish to use for foreign investments or off-shore banking.

I recommend: DeltaQuest has general information on banks in Iceland including so common regulations. The U.S. State Department has tips and basic information for Americans wishing to do business with Iceland banks.

Review governmental acts for Iceland banking

The Iceland Ministry of Finance and The Financial Supervisory Authority make and enforce banking laws for Iceland. Reviewing these laws allows you to understand and follow all government standards for your account at a bank in Iceland. Also, by reviewing banking laws put into place by the Icelandic government, you will get a clearer picture of all legislation and regulations involved in Iceland banking.

I recommend: The Financial Supervisory Authority - Iceland has copies of all governmental acts that apply to banks of Iceland. Browse the Iceland Ministry of Finance website to find legislation covering global banks in Iceland. Check for announcements from the Central Bank of Iceland for the latest on the restructuring of Icelandic banking. The Financial Times closely covers Iceland's financial sector.

Discover foreign investment and exchange policies for international banking in Iceland

Understanding foreign policies for Americans using Iceland banks allows you to see what is expected of you as a customer and what to expect from the banking institution. These banking polices are designed to regulate how foreigners' investments are treated in Iceland. This information will help you to understand the exchange process and make sure your bank is following proper procedure.

I recommend: The Ministry of Industry Energy and Tourism of Iceland has foreign exchange policies for banks. The Central Bank of Iceland has exchange and foreign investment information online. The U.S. Embassy in Iceland has information on conversion rates and investments in Iceland.

Banking in Iceland requires a good knowledge about the banking and financial systems of the country. Iceland is home to only a few banks, but these banks cover international, commercial and personal needs. Good information about banks in Iceland is necessary to successfully take advantage of the system.

Iceland banks were hard hit by the international credit crisis of 2008 and the four largest banks (Straumur, Glitnir, Landsbanki and Kaupthing) were nationalized. So check with Iceland's Financial Supervisory Authority and do some research in the financial press to know the status of Iceland banks. It is also important to remember that foreigners doing international banking in Iceland are subject to restrictions the government puts on foreign investment.

Keep the following in mind when looking for banks in Iceland:

1. Focus on commercial banks in Iceland that can meet your business’ needs.

2. Make sure you know Icelandic rules for international investing before you bank in Iceland.

3. Check the financal status of any Icelandic bank carefully.

Action Steps
The best contacts and resources to help you get it done

Find general information on Iceland banks

Banking industry and financial information on Iceland can be found from the Icelandic government and from other sources.

I recommend: The Central Bank of Iceland gives information on inflation, exchange rates, interest rates, currency and more. Bonds.is gives an overview of the Icelandic economy as well as links to other sources of Icelandic financial information.

Get the latest information on banks of Iceland before banking or investing

In late 2008 and early 2009, the Iceland Financial Authority took over the four main Iceland banks, keeping them in operation while paring down their size.

I recommend: Check the sites for New Landsbanki, New Kaupthing, New Glitnir and Straumur for their latest status. Also see the Financial Supervisory Authority of Iceland for the latest word from the Iceland bank regulator. The Financial Times covers Iceland banking regularly.

Use a list of Iceland's banks to find one that will best suit your needs

By comparing the banks, you can make a knowledgeable choice before banking in Iceland.

I recommend: Bonds.is gives a list of financial institutions in Iceland. Gateway to Iceland also lists the banks of Iceland, while also providing additional information about the country.

Find out about foreign banking and investing regulations in Iceland

Foreigners are welcome to invest in Iceland or to use the banks of Iceland, provided that they meet the government requirements. For full banking in Iceland, it is also advisable to be able to read Icelandic, as much financial information is in that language.

I recommend: In order to open a bank account in Iceland, you need an Icelandic ID number, available from the National Register of Persons.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Even though there aren't foreign banks in Iceland, the Icelandic commercial banks are international and are used to dealing with foreign customers and investors.
• •  Be patient when accessing websites for banks in Iceland that provide frequently updated financial information, as these need more time to load English translations.

The banking system in Iceland is not the same as it was just a short time ago. Banks in Iceland now face a new regulatory structure. However, there are still opportunities within the country if you can understand the essential elements and structure of the system. To begin this research, you should learn some key terms related to banks in Iceland. While these terms won't make you an expert, they will provide a knowledge base on which to build a comprehensive review of the banks in Iceland.

Action Steps
The best contacts and resources to help you get it done

Central Bank of Iceland

The Central Bank of Iceland is the bank to the government in Iceland. The Central Bank of Iceland is also responsible for monetary policy, price stability, banking regulatory functions, and managing reserves. The functions are similar but more limited in scope to that of the Federal Reserve in the United States.

I recommend: Review the synopsis of the Central Bank of Iceland for further details on the topic.

Financial Supervisory Authority

The Financial Supervisory Authority in Iceland is responsible for the implementation and management of the banking system. If you have any questions or concerns about a bank in Iceland, contact the Financial Supervisory Authority.

I recommend: Examine the purpose and responsibilities of the Financial Supervisory Authority.

Iceland Ministry of Finance

The Iceland Ministry of Finance is a governmental agency responsible for economic, business and banking stability and growth within the country. The Iceland Ministry of Finance also issues and manages taxation policy within the banking system and the country at large.

I recommend: Evaluate the goals, mission and values of the Iceland Ministry of Finance.

Invest in Iceland Agency

The Invest in Iceland Agency promotes foreign business investment within the country. The agency provides investment expertise and services at no charge, for businesses wanting to take advantage of opportunities in the country.

I recommend: Assess the primer on the Invest in Iceland Agency for further details on the term.

U.S. Embassy in Iceland

The U.S. Embassy in Iceland provides support for American businesses and individuals in Iceland. The Embassy works with the Icelandic government to promote and maintain economic relationships with U.S. companies.

I recommend: Examine the mission statement of the U.S. Embassy in Iceland for more information.

Icelandic Króna

The Icelandic Króna is the official currency of Iceland. A stable currency usually indicates a stable banking system. Therefore, it's important to monitor the exchange rate for the Icelandic Króna relative to the U.S. dollar. In addition, favorable currency rates can lead to additional banking opportunities in Iceland.

I recommend: Use the currency converter and definition at Convert World for more details on the Icelandic Króna.