Authorisations for disposal and withdrawal
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 permissable.
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.