Iceland: Liberalisation of capital controls on offshore Króna holders and reserve requirement on capital inflows
Clearstream Banking1 informs customers that the Government of Iceland agreed to present to Parliament an amended bill of legislation from the Minister of Finance and Economic Affairs, that aim to introduce new conditions to the Act on the Treatment of Króna-Denominated Assets Subject to Special Restrictions, no. 37/2016, and the Foreign Exchange Act, no. 87/1992.
The amended bill addresses the following matters:
- Liberalisation of capital controls on offshore Króna holders
- Changes in implementation of the special reserve requirement on capital inflows
The announcement is available on the Central Bank of Iceland website.
Details of how these changes will impact Clearstream Banking customers holding offshore Króna assets, or wanting to invest into new Króna denominated assets are not yet confirmed.
However, Clearstream Banking is in close dialogue with the Central Bank of Iceland to clarify how these changes impact the current processes and limitations in place.
We continue to monitor the situation in the Icelandic market and will provide further information as it becomes available.
For further specific information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.