Authorisations for disposal and withdrawal
Authorisations for withdrawals in connection with release of offshore krónur
General authorisation: An authorisation for all holders of offshore krónur to release their offshore króna assets and purchase foreign currency and export it to an account abroad. The authorisation extends only to deposits and certificates of deposit; however, owners of other types of offshore króna assets, such as securities, will have the option of selling those assets or, as applicable, holding them until maturity if they wish to exercise this general authorisation.
Authorisation in connection with continuous ownership: An authorisation for offshore króna holders that have owned offshore króna assets continuously since before 28 November 2008 to release those offshore króna assets from the legal restrictions. It is not required that foreign currency be purchased, as with the general authorisation; instead, it is permissible to allocate the assets in Iceland. This authorisation is subject to confirmation by the Central Bank of Iceland that the continuous ownership requirement has been satisfied.
Authorisation for individuals: An authorisation for individuals to withdraw up to 100 m.kr. from accounts subject to special restrictions.
This authorisation extends to deposits and Central Bank of Iceland certificates of deposit. It is not required that foreign currency be purchased, as with the general authorisation; instead, it is permissible to allocate the assets in Iceland. This authorisation is subject to confirmation by the Central Bank of Iceland that an individual is the beneficial owner of the funds.
The authorisation in connection with continuous ownership and the authorisation for individuals require confirmation by the Central Bank of Iceland. Applications should be sent by e-mail to firstname.lastname@example.org. Applications for confirmation of continuous ownership must be accompanied by documentation demonstrating continuous ownership; i.e., an account statement dating from before 28 November 2008 and information on the assets when confirmation is requested. An individual’s application for confirmation must be accompanied by documentation demonstrating that the individual concerned is the owner of the funds; i.e., a recent account statement.
It is permissible to invest in Central Bank of Iceland certificates of deposit and financial instruments issued in domestic currency and included in the Central Bank of Iceland investment list. Certificates of deposit are issued by the Central Bank of Iceland. They do not have a specified maturity date, they bear variable annual interest, and reimbursement of the principal is authorised only in accordance with the decision of the issuer. Upon issuance, the certificates of deposit shall bear an annual interest rate of 0.5%, which shall be reviewed by the Central Bank of Iceland on the interest payment date.
Transfer between accountsTransfer of funds between accounts subject to special restrictions are permissible.
Withdrawals of interest, indexation of interest, and dividendsIt is permissible to withdraw accrued interest, indexation of interest, dividends, contractual instalments on the principal of loan obligations other than bullet loan obligations, and indexation of such contractual instalments. The Central Bank of Iceland must be notified of withdrawals pursuant to the first sentence within five business days of their taking place.
The term interest refers to interest on deposits held in accounts subject to special restrictions, bonds and bills according to Article 2, Items 1(c), 1(e), and 1(f) of Act no. 37/2016, and Central Bank of Iceland certificates of deposit.
The term dividends refers to dividend payments on profits from a company’s regular operations, not on revenues deriving from the sale of assets in excess of sales gains, profits due to debt write-offs, asset valuation increases, share capital reductions, or other comparable sources. Dividends shall be financed with cash from operations in available funds and not with asset sales, borrowings, share capital increases, or other comparable measures. If the measure underlying the payment of dividends differs substantially from general practice in such transactions and the main purpose appears to be the circumvention of restrictions provided for in this Act, the Central Bank may refuse confirmation.
Confirmation requests and documentation shall be sent in electronic form to the Central Bank of Iceland at the e-mail address email@example.com. The contents of requests for confirmation are discussed in Article 2 of the Rules on the Treatment of Króna-Denominated Assets Subject to Special Restrictions, no. 425/2016.
Authorisation for withdrawals by individualsUpon receiving confirmation from the Central Bank, individuals are permitted to withdraw a maximum of 100,000,000 kr. per calendar year, provided that the offshore króna assets have been continuously owned by the beneficial owner since 28 November 2008.