Iceland Country Report

Terrorism risks are negligible and are likely to remain so. There are few high-profile targets aside from a NATO radar station, and no known non-state armed groups operate in the country. However, Iceland has had some politically motivated attacks or attempts of attacks in the past. In 2012, a man detonated an IED outside the office of then-prime minister Jóhanna Sigurdardóttir in a disagreement over her policies; he has not been charged. According to the National Police Commission report, the Hells Angels motorcycle club has made threats against the minister of interior as part of the organisation's pushback against regulatory reforms concerning the fight against organised crime.

Crime rates in Iceland are very low by international standards. During the coronavirus disease 2019 (COVID-19) virus pandemic, crime has declined. Violent crime is rare, despite a high rate of gun ownership. Organised crime is relatively minor. Petty crime is mostly concentrated in the capital, Reykjavík. The investigation and prosecution of financial crime has expanded exponentially since the 2008–09 financial and banking collapse, when a special prosecutor's office was established, the remit and resources of which have since been expanded. However, since October 2019, Iceland has been on the Financial Action Task Force (FATF) grey list owing to inadequate anti-money laundering and counter-terrorism financing measures.

Iceland faces negligible risks of interstate or civil war, although the country occupies a key geostrategic location in the event of potential future global tensions. Despite being a NATO member, Iceland has no standing army, although it maintains a coast guard and air defences. NATO countries operate a periodic, rotating deployment of fighter aircraft to patrol Iceland’s airspace. Iceland disputes the ownership of Rockall Island and its surrounding oil reserves with the United Kingdom, Ireland, and Denmark. However, any disputes are likely to be resolved at the diplomatic level and remain extremely unlikely to lead to a military conflict.

There is little support among the wider public for perceived 'anti-social behaviour’, which limits the incidence of disruptive activism. Political and environmental protests tend to be peaceful, aimed at raising awareness of relevant issues, and are not intended to cause disruption or damage to business operations or injuries. Political protests have become more regular in the aftermath of the protests that followed the country’s financial and banking collapse in 2008–09. Perceived corrupt practices will also remain a likely trigger of demonstrations, as was the case in November 2019. Risk of protests in 2020 is mitigated by restrictions on large public gatherings owing to the coronavirus disease 2019 (COVID-19) virus outbreak.