VZCZCXRO0809
PP RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHRK #0452/01 3550743
ZNR UUUUU ZZH
P 210743Z DEC 06
FM AMEMBASSY REYKJAVIK
TO RUEHC/SECSTATE WASHDC PRIORITY 3097
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCOWCA/COGARD MIO EUROPE ROTTERDAM NL
REUILB/NCTC WASHINGTON DC

UNCLAS SECTION 01 OF 02 REYKJAVIK 000452 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR S/CT:RHONDA SHORE AND NCTC 
OSLO FOR DATT 
COPENHAGEN FOR LEGAT 
ROTTERDAM FOR LCDR SPRINGER 
 
E.O. 12958: N/A 
TAGS: PTER ASEC IC
SUBJECT:  ICELAND:  2006 COUNTRY REPORTS ON TERRORISM 
 
REF:  STATE 175925 
 
¶1.  Post submits the following narrative for inclusion in the 2006 
Country Reports on Terrorism.  Text of report will also be emailed 
to EUR/NB and S/CT via unclass and classified email. 
 
¶2.  Begin text of submission: 
 
Iceland 
 
Iceland is a NATO ally and party to all 12 major UN conventions 
against terrorism.  Though the country does not have a military of 
its own, in 2006 the government undertook efforts to review its 
national security policy following the withdrawal of U.S. military 
forces from Iceland.  Iceland does not provide official support to 
terrorist organizations and is a partner of the U.S. government in 
counterterrorism efforts. 
 
The Icelandic government does not provide sanctuary for terrorists 
or terrorist organizations and has made strong efforts to ensure 
that Iceland is not a haven for terrorist groups.  In June 2006 
Iceland passed the "Act to Counter Money Laundering and the 
Financing of Terrorist Acts," which brought Icelandic law fully into 
compliance with the Financial Action Task Force's recommendations 
regarding terrorist financing.  Icelandic authorities implement 
asset-freeze requests from the United Nations 1267 Committee and 
cooperate with U.S. government asset-freeze requests.  As part of 
its efforts to prevent trafficking in weapons of mass destruction, 
Iceland is a member of the Proliferation Security Initiative and a 
participant in the U.S. Coast Guard's International Port Security 
Program.  Iceland is a party to the Schengen Agreement and as such 
consults closely with other Schengen states on border control and 
security matters. 
 
There are no known international or domestic terrorist organizations 
operating in Iceland.  In September 2006 the National Police 
Commissioner's Office confirmed that it was investigating a case 
involving a resident who had shown an interest in researching 
explosives and bomb making.  No charges were brought in the case, 
but this was the first public confirmation that Iceland's police 
conduct pre-emptive investigations of possible terrorist activity. 
Further, on September 26, 2006 the government announced efforts to 
strengthen its security and counterterrorism capabilities, including 
among other actions a legal review of intelligence and information 
sharing with foreign governments, the planned establishment of a 
national security unit within the National Police Commissioner's 
Office, and purchases of a new fixed-wing aircraft and patrol vessel 
for the Icelandic Coast Guard (ICG). 
 
With the closure of the Cold War-era U.S. Naval Air Station Keflavik 
in September 2006, the governments of the U.S. and Iceland committed 
themselves to developing new security arrangements focused on 
countering terrorism and other emerging threats, such as 
proliferation and trafficking.   On October 12, 2006, Iceland's 
Prime Minister and Foreign Minister and the U.S. Secretary of State 
signed a Joint Understanding on defense and security issues, 
detailing new initiatives in training, exercises, and intelligence. 
 
 
During the year the Government of Iceland conducted several joint 
counterterrorism training activities with the U.S. government.  From 
August 29-30, 2006, the ICG hosted Operation Northern Challenge, an 
explosive ordnance disposal (EOD) and anti-improvised explosive 
device exercise with participants from the ICG, the U.S., and five 
other NATO and Partnership for Peace militaries.  From October 
12-17, the ICG's EOD unit and the National Police Commissioner's 
"Viking Squad" counterterrorism unit provided security for the visit 
of the amphibious assault ship USS Wasp; on October 16, the Viking 
Squad and the EOD unit conducted counterterrorism training with 
support from the Wasp's helicopter detachment. 
 
Iceland supports NATO counterterrorism operations in Afghanistan 
through the deployment of a mobile observation team to the 
provincial reconstruction team in Ghor Province and its role as lead 
NATO nation at Kabul International Airport.  Iceland has also 
deployed personnel to the Sri Lanka Monitoring Mission, which 
reports violations of the cease-fire between the Sri Lankan 
government and the Liberation Tigers of Tamil Eelam (LTTE). 
Politically, Iceland supports OSCE counterterrorism efforts and has 
also been active at the United Nations in supporting the passage of 
a Comprehensive Convention on International Terrorism. 
 
End text. 
 
¶3.  POC for this report is Political Officer Brad Evans, 
EvansBR@state.gov, tel: +354-562-9100 ext. 2294, mobile: 
 
REYKJAVIK 00000452  002 OF 002 
 
 
+354-693-9212, estimated departure from post July 2009. 
 
KOSNETT