The Financial Supervisory Authority of Iceland (FME) is planning to set up a SWAT team similar to America’s to avoid another crisis in the nation’s banking system. The team would be sent to offices without prior notice to scrutinise banks and other financial firms suspected of not complying to the rules.
In an interview with Complinet, a provider of compliance solutions, Gunnar Andersen, director general of FME, said: “Forensic examinations will be carried out on site. We are trying to change the whole Icelandic banking culture – risk management was very poor and due diligence not observed.”
Reportedly, in October 2008, Iceland witnessed the worst economic turmoil. The nation’s banks became victims of excessive risk taking, inadequate management and lax government supervision. “There was a complete lack of self-criticism. People wanted to believe everything would be all right. These ratings certainly influenced the thinking of regulators and investors. This was a factor that should not be taken lightly,” Mr. Andersen added.
