Iceland Country Report

Terrorism risks are negligible. There are few high-profile targets aside from a NATO radar station, and no known non-state armed groups operate in the country. The most probable form of attacks would be a shooting attack by a lone radicalised jihadist actor against state or Jewish assets, or a similar attack against Muslim assets or individuals by far-right individuals. However, both scenarios are unlikely overall. From October 2015, Iceland is a signatory to the Council of Europe Convention on the Prevention of Terrorism protocol regarding foreign terrorist fighters.

Crime rates in Iceland are very low by international standards. Violent crime is rare, despite a high rate of gun ownership. Organised crime is relatively minor and mostly perpetrated by Eastern European networks and motorcycle gangs. 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, in October 2019, Iceland was added to the Financial Action Task Force (FATF) grey list due to inadequate anti-money laundering and counter-terrorist financing measures.

Iceland faces negligible risks of interstate or civil war, although the country occupies a key geostrategic location in the event of future global tensions. Despite being a NATO member, Iceland has no standing army, although it maintains a coastguard 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 the relevant issues, and concentrated outside government offices in Reykjavík rather than intended to cause disruption or damage to business operations. 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 protests, as was the case in November 2019.