Vigorously increase efforts to prosecute trafficking crimes and sentence convicted traffickers to adequate penalties, which should involve significant prison terms. * Increase efforts to collect evidence for the prosecution of traffickers, including by providing police with sufficient human and material resources, such as equipment and funding. * Enhance training for investigators and prosecutors on evidence collection, including in online cases, and on understanding all aspects of trafficking. * Strengthen victim assistance by increasing the number of qualified professionals available to address the needs of trafficking victims, particularly child trafficking victims, in a timely manner. * Develop a formal NRM defining processes and roles of all relevant government agencies and front-line actors to refer all victims to appropriate care and train those actors to ensure uniform implementation nationwide. * Increase training for police, prosecutors, judges, and other officials on all aspects of trafficking, particularly on anti-trafficking laws and identification of victims among migrant workers, asylum-seekers, and children.

The government maintained law enforcement efforts. Article 227a of the criminal code criminalized sex trafficking and labor trafficking and prescribed penalties of up to 12 years’ imprisonment. These penalties were sufficiently stringent and, with respect to sex trafficking, commensurate with those prescribed for other grave crimes, such as rape. In 2023, authorities investigated 14 new trafficking cases (five sex trafficking, three labor trafficking, and six unspecified forms of trafficking), twice as many as in 2022 (seven). The government did not prosecute or convict any traffickers for the second consecutive year (one prosecution and conviction in 2021). The government did not report any investigations, prosecutions, or convictions of government employees complicit in trafficking crimes. In 2023, the NCIP – the institution responsible for international law enforcement cooperation – worked with foreign counterparts on multiple international investigations, including a labor trafficking case with Norwegian authorities. NCIP and Iceland’s EUROPOL liaison participated in the Nordic Police and Customs Cooperation – a Nordic law enforcement platform where domestic law enforcement agencies assigned police and customs officials as liaisons to other countries. Under the auspices of the Nordic Council of Ministers, officials from all five Nordic countries maintained an anti-trafficking working group comprising stakeholders from across the region engaging on trends, best practices, challenges, and activities in their respective countries. As part of the working group and to facilitate international policing efforts, authorities developed a police network composed of Nordic police officers cooperating on cross-border investigations, exchanging information, and conducting trainings on investigating trafficking cases. Separately, the MOJ task force maintained a law enforcement advisory and intelligence panel that worked with foreign law enforcement agencies and anti-trafficking organizations on human trafficking, migrant smuggling, and other crimes. The panel relayed information to Icelandic police districts and assisted those districts in determining whether a case should be considered as trafficking and how it should be investigated.

The Southwestern District Police, which included the border police at Keflavik International Airport, operated a unit specializing in major crime investigations, including trafficking. The Reykjavik Metropolitan Police maintained an anti-trafficking unit supported by a cyber-crime unit that monitored the Internet for trafficking activity. In recent years, reports have indicated a rise in online exploitation, including trafficking, and experts have noted the need to build expertise in investigating such cases. Similarly, reports indicated a rise in organized crime and associated violence; the government noted trafficking was often one component of larger investigations linked to organized crime. The NCIP released a report on organized crime, revealing strong indicators that individuals located abroad controlled elements of organized crime in Iceland. While the crimes were diverse, several instances indicated exploitation of vulnerable populations related to human trafficking. As a result, the government enhanced cooperation among district police, prosecutors, and customs through joint investigations into organized crime, including trafficking. In one investigation, authorities conducted the largest law enforcement operation in Iceland’s history involving human trafficking and organized crime, among other crimes, in several small businesses throughout the country; authorities arrested five suspects and identified dozens of Vietnamese labor trafficking victims. In 2023, the government allocated 23.9 billion Icelandic krona (ISK) ($176 million) to law enforcement for programs and activities countrywide, including combating organized crime and increasing interagency cooperation to prevent trafficking and other related crimes, compared with 19.9 billion ISK ($146 million) in 2022.

Insufficient evidence collection and interdepartmental coordination led police and prosecutors to charge suspects under non-trafficking statutes, such as fraud or migrant smuggling, that carried more lenient penalties and were easier to convict; this practice weakened deterrence, did not adequately reflect the nature of the crime, and undercut broader efforts to combat trafficking. According to experts, authorities’ failure to collect sufficient evidence and respond promptly to potential trafficking cases stemmed from limited human and material resources, such as equipment and funding, as well as a lack of training. Furthermore, experts noted police struggled to collect evidence, particularly in labor trafficking cases, because the burden of proof was difficult to meet. Because police and prosecutors relied heavily on victim testimony, they did not always utilize alternative methods for collecting evidence, such as wiretapping, or pursue cases when victims left the country. Even with victim cooperation, authorities did not prosecute any traffickers as evident in 2023 when 23 trafficking victims participated in investigations. In addition, poor coordination between police and prosecutors led to suspended investigations and no prosecutions. To address concerns, the Reykjavik Metropolitan Police assistant prosecutor, and former anti-trafficking national coordinator, assumed responsibility for preparing evidence and building cases before referring them to the district prosecutor. Observers expressed optimism the move would reduce the difficulties of achieving prosecutions and convictions under trafficking statutes. To further address concerns, NCIP hired additional personnel and prosecutors to the trafficking and organized crime investigative units and facilitated specialized anti-trafficking training with Finnish counterparts for investigators and prosecutors. Other educational efforts supported by the government included trafficking-related trainings for police, prosecutors, government employees, and professionals on various topics, such as investigative methods, understanding human trafficking, and victim protection.

The government maintained victim protection efforts. The government identified 36 trafficking victims (five sex trafficking, 15 labor trafficking, and eight unspecified forms of trafficking), a fivefold increase from seven in 2022. The vast majority of victims were foreign nationals; one was Icelandic. Of the 28 identified victims (16 women and 20 men), four were child victims of unspecified forms of trafficking. The Bjarkarhlid Family Justice Center continued to serve as a “one stop shop” for victims of violence, including trafficking. The Ministry of Social Affairs and Labor (MOSL) allocated 4.5 million ISK ($33,100) for specialized trafficking services at Bjarkarhlid, an increase from 3 million ISK ($22,100) in 2022. The MOJ provided an additional 300,000 ISK ($2,210) grant for staff to receive anti-trafficking training. The center coordinated social services and law enforcement involvement; provided victims with assistance; and compiled victim information and case history into a centralized database. Furthermore, the center utilized a standardized questionnaire for victims to better quantify and identify vulnerable groups. The center also distributed guidelines for identifying victims in locations where victims received assistance, such as health clinics. In 2023, the center updated its procedures for referring potential victims to include swiftly forming a team of experts to assess victims’ needs and ensure appropriate support. This team of experts referred victims to appropriate NGOs or institutions providing short- or long-term care. While the center served as a referral mechanism for victims of violence, including trafficking, the government did not have a formal NRM for trafficking victims defining processes and roles of all relevant government agencies and front-line actors who came into contact with trafficking victims. Experts recommended developing and implementing an NRM to standardize and strengthen the identification of victims and their referral to assistance. In the absence of an NRM, the police maintained identification and referral procedures requiring them to contact welfare services in the municipality and the MOSL to coordinate victim care and placement. The Directorate of Immigration provided staff with comprehensive SOPs for screening asylum-seekers for potential trafficking; the SOPs dictated referral paths for and processes applying to potential unaccompanied child trafficking victims. In 2023, a southwestern police district developed its own identification and referral procedures for trafficking victims that included information on early risk assessment and long-term assistance.

Overall, the government maintained a well-managed social welfare system with robust protections. All victims had access to free legal, medical, psychological, and financial assistance, whether or not they stayed at a shelter or cooperated with authorities. However, the government did not customize services to the specific needs of trafficking victims, and, instead, provided the same services to all victims of violence, including trafficking. In 2023, 21 trafficking victims received assistance from social services, a significant increase from 12 victims in 2022. Municipal social service agencies provided services and financial assistance to victims, and the MOSL reimbursed the municipalities for all associated expenses. In 2023, the government allocated 254 million ISK ($1.9 million) for service agreements with various shelters that provided assistance to victims, a decrease from 292 million ISK ($2.2 million) in 2022. The government, in partnership with an NGO, maintained two shelters in Akureyri and Reykjavik for women and children; the shelters provided free counseling services for women. In southern Iceland, the government maintained a counseling and support center for victims of GBV, including trafficking victims. Male victims could access general municipal social services and receive referrals to NGOs providing food, shelter, legal advice, and health care. Under the Child Protection Act, all children living in Iceland had the same right to protection and services from child welfare. If authorities determined a case involved a potential child trafficking victim, they contacted child protection authorities who were responsible for assisting the victims, including unaccompanied children, with accommodation and other services. Pursuant to the NAP, child protection authorities provided guidelines for identifying potential child trafficking victims for professionals working with children. In addition, an MOJ-led task force and the National Agency for Children and Families provided information on identifying trafficking indicators among children. Child trafficking victims received support, including interviews and medical examinations, at Barnahus – a multidisciplinary and interagency center, offering a coordinated, child-sensitive approach to preventing re-traumatization during investigations and court proceedings. All four child trafficking victims identified received services from the municipality and from Barnahus. Experts expressed concern about long wait times – some children reportedly waited several weeks – for specialized services, particularly psychological assistance, because of the limited number of qualified professionals at Barnahus.

Icelandic law allowed victims to receive support services, regardless of their participation in investigations and prosecutions, and foreign trafficking victims to obtain either a nine-month residence permit or a one-year renewable residence permit, which was available to victims who faced retribution or hardship in their home countries or cooperated with law enforcement. Police took official reports for all victims, except in cases involving children, in which a specialized forensic psychologist took their statements at Barnahus. All victims could receive a state-appointed and state-funded attorney, as well as social workers and psychiatric services. The law required police to inform victims of their right to obtain compensation and provide a form on how to submit a civil law claim during the criminal investigation. While there was no specific compensation program for trafficking victims, such a program existed for victims of violence and could be applicable for trafficking victims. The law permitted compensation claims at the appeal stage of court proceedings despite acquittals of convicted criminals, including traffickers. Under the Icelandic judicial system, if a legal proceeding yielded a conviction, the court could order restitution as part of sentencing.

The government increased prevention efforts. In 2023, the MOJ established a new governmental steering group to coordinate anti-trafficking efforts, strengthen international cooperation, and broaden expertise within the government. In addition, the MOJ led an advisory steering group, which incorporated a range of government and non-government stakeholders, including a survivor, and coordinated interagency anti-trafficking efforts through three task forces. The task forces focused on prosecution, protection, and prevention, respectively, and developed specific policy proposals to implement the NAP. The government continued to implement its existing NAP that included action items focused on bolstering public awareness, education, and institutional knowledge. Funding from the national budget financed relevant ministries and government agencies for implementation. In 2023, the MOJ partnered with the police and a local university to host an international conference on the impact of technology on sex trafficking, examining the challenges in detecting, investigating, and prosecuting technology-facilitated trafficking. The MOJ also partnered with the Icelandic Red Cross and other organizations to create an educational video about human trafficking available in multiple languages on social media. The government continued to participate in the Council of Baltic Sea States anti-trafficking task force, working to strengthen and improve anti-trafficking policies, consolidate expertise from the national level with the international level, and exchange information on efforts and best practices. While the government did not operate a trafficking-specific hotline, the country’s general emergency telephone number provided information to victims on services and directed callers to appropriate responders. The government provided comprehensive guidelines and training to emergency hotline operators on responding to suspected trafficking cases. In 2023, one potential trafficking victim contacted the hotline; operators informed the police and referred the victim to Bjarkarhlid. The MOJ maintained an online emergency services portal for trafficking victims with information – available in English, Icelandic, and Polish – on trafficking indicators and assistance and provided a quick response code directing the public to the portal. The government made efforts to reduce the demand for commercial sex acts by conducting joint action days with EUROPOL, resulting in the apprehension of individuals purchasing commercial sex. The government did not report providing anti-trafficking training to its diplomatic personnel but noted the Ministry of Foreign Affairs maintained a code of conduct for diplomats.

To prevent forced labor in supply chains, the Icelandic Public Procurement Act stipulated principal contractors were responsible for ensuring all subcontractors were paid in accordance with collective bargaining agreements. The Act also stipulated if a bidder or a participant was a convicted trafficker, they were barred from procurement bids for a minimum of three years. According to tender conditions in Reykjavik, representatives from the municipality could inspect worksites and demand proof that contractors and subcontractors were following the proper legal conditions. The government maintained an action plan and policy for identifying human trafficking and child labor in the procurement process and assigned the Central Public Procurement Agency with responsibility. The government also maintained a working group to combat “social dumping,” whereby employers provided workers with substandard pay, accommodations, or working conditions compared to the law, in the domestic labor market and to develop a legislative framework on the issue. The Directorate of Labor (DOL) continued to post information on the rights of foreign workers in Iceland and the resources available to them on its website. The DOL maintained a three-person team to respond to suspected trafficking cases and educate government employees on trafficking and identifying potential victims. In 2023, the government amended the law to allow migrant workers without a residence permit to change employers in a timely manner without obtaining special permissions. While the government did not require recruitment agencies to be licensed or registered in Iceland, the DOL required all companies contracting workers in Iceland to register with the DOL and provide information on business activities and workers; breaches of these requirements resulted in fines. Icelandic law prohibited companies, including recruitment agencies, from charging recruitment or hiring fees.

Since the beginning of Russia’s full-scale invasion of Ukraine, Icelandic authorities have taken steps to mitigate the potential for trafficking among refugees by providing trafficking guidelines for border control and informational brochures on common trafficking indicators and local anti-trafficking resources for law enforcement, airport authorities, and other professionals in contact with potential victims. Authorities distributed flyers on the dangers of trafficking in English, Russian, and Ukrainian to refugees from Ukraine and all individuals under international protection in Iceland, regardless of their nationality. In addition, the MOJ lowered barriers for Ukrainians to seek asylum or refugee status in Iceland and extended the policy through February 2025. In 2023, the government processed more than 1,600 Ukrainians for humanitarian protection. In 2023, there were no trafficking cases involving refugees from Ukraine. The Ministry of Education and Children’s Affairs allocated 140 million ISK ($1.03 million) to Icelandic municipalities to support Ukrainian resettlement.

As reported over the past five years, human traffickers exploit domestic and foreign victims in Iceland and, to a lesser extent, traffickers exploit victims from Iceland abroad. Traffickers exploit women and children from Africa, Eastern Europe, Southeast Asia, and South America in sex trafficking and men and women from Southeast Asia and Eastern Europe in forced labor. Vulnerable groups include asylum-seekers, migrants, refugees, children, and foreign students. Traffickers increasingly use the Internet and social media to recruit victims for sex and labor trafficking. Traffickers reportedly exploit Romanian children from Romani communities in sex trafficking. Most traffickers are small business owners or individual traffickers who are foreign nationals living legally in Iceland and engaging in other criminal activities. In recent years, reports have indicated the presence of organized crime groups that specialize in a range of criminal activities, including sex trafficking, drug trafficking, and money laundering. A police report on organized crime raised concerns about trafficking in Iceland and implicated nationals from the Middle East and southeastern Europe operating criminal organizations involved in sex trafficking. A separate police report notes a nexus between asylum abuse and organized crime through which traffickers seek to manipulate the asylum system. Migrant workers in construction, tourism, and domestic service are particularly vulnerable to trafficking. In addition, traffickers increasingly exploit migrants from the Philippines, Romania, and Vietnam in food delivery, restaurants, dry cleaners, and nail salons. Foreign “posted workers” are at particular risk of forced labor as traffickers pay them in their home countries and contract them to work for up to 183 days in Iceland to avoid taxes and union fees, limiting tax authorities’ and union officials’ ability to monitor their work conditions and pay. Traffickers reportedly exploit the visa-free regime in the Schengen Zone and the European Economic Area to bring victims to Iceland for up to three months and move them out of the country before they must register with local authorities. Refugees fleeing Russia’s full-scale invasion of Ukraine and seeking sanctuary in Iceland are highly vulnerable to trafficking; Icelandic authorities confirm supporting approximately 3,983 refugees in Iceland since the full-scale invasion began.