• 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 in a timely manner.
• Develop a comprehensive NAP to combat trafficking, with particular attention to labor trafficking and child trafficking, and include a dedicated timeline for implementation.
• 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.
• Create a central database to accurately track and report the government’s anti-trafficking statistics.
• Increase training for police, prosecutors, judges, and other officials on all aspects of trafficking, particularly on anti-trafficking laws and identification of victims among asylum-seekers, migrant workers, and children.

The government maintained anti-trafficking 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 2024, the government changed its methodology for reporting statistics to a calendar year. Authorities investigated 24 new trafficking cases (five sex trafficking, 13 labor trafficking, and six unspecified forms of trafficking) in 2024, compared with 22 in 2023; these statistics included forced marriage, which Icelandic law criminalized as a form of trafficking. Thirteen trafficking investigations initiated in previous years remained ongoing in 2024. For the third consecutive year, the government did not prosecute or convict any traffickers (one prosecution and conviction in 2021). The government did not report any investigations, prosecutions, or convictions of government employees complicit in trafficking crimes. Observers raised concerns that government statistics were unreliable and noted the need to improve the system for collecting and collating data on investigations, prosecutions, and convictions.

The National Commissioner of Icelandic Police (NCIP) — the institution responsible for international law enforcement cooperation — worked with foreign counterparts on multiple international investigations and participated in a Europol-led hackathon on online human trafficking and a Europol-led joint action day on sex trafficking. 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 maintained a police network composed of Nordic police officers cooperating on cross-border investigations, exchanging information, and conducting trainings on investigating trafficking cases. Separately, the Ministry of Justice (MOJ) 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. Authorities noted trafficking was often one component of larger investigations linked to organized crime with individuals located abroad controlling elements in Iceland. District police, prosecutors, and customs maintained national joint investigation groups to cooperate on investigations into organized crime, including trafficking. For instance, in 2024, 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. Experts cited the case as an example of human trafficking’s growing prevalence in the country and acknowledged an increase in awareness among authorities and government officials in recent years.

The Reykjavik Metropolitan Police and the Sudurnes District Police, which included the Keflavik International Airport, maintained anti-trafficking units. Lack of funding, personnel, and resources, such as equipment, for the police hindered trafficking investigations, particularly in rural areas. Experts reported understaffing contributed to authorities’ untimely response to potential trafficking cases, particularly labor trafficking cases, and impeded sufficient evidence collection. Insufficient evidence collection led police and prosecutors to charge suspects under non-trafficking statutes, such as fraud, wage theft, or migrant smuggling, that carried more lenient penalties and were easier to convict. To address this challenge, the Reykjavik Metropolitan Police assistant prosecutor, and former anti-trafficking national coordinator prepared evidence and built cases for the district prosecutor. Furthermore, the center for police training and professional development held courses for law enforcement on investigative methods, interviewing techniques, and understanding human trafficking.

The government increased victim protection efforts.

In 2024, the government changed its methodology for collecting and reporting victim identification statistics to a calendar year. In 2024, authorities identified 37 trafficking victims (10 sex trafficking, 20 labor trafficking, and seven unspecified forms of trafficking), a notable increase from 26 victims in 2023; statistics included victims of forced marriage, which Icelandic law criminalized as a form of trafficking. All identified victims in 2024 were foreign nationals; six were children. The Bjarkarhlíð Family Justice Center functioned as the national referral center for adult victims of violence, including trafficking, offering support and counseling. The government allocated 28 million Icelandic krona (ISK) ($202,620) to Bjarkarhlíð to support human trafficking efforts for 2024 and 2025, a nearly fourfold increase from the 7.5 million ISK ($54,270) allocated for 2022 and 2023. With the rise in trafficking cases and identified victims, the government increased funding to the center to boost anti-trafficking measures, such as raising awareness, hiring personnel, and developing standardized procedures for the provision of services. The center staffed a human trafficking coordination advisor to provide trafficking victims with support and to coordinate a team of experts, including law enforcement and social services, to assess victims’ needs and ensure appropriate support through NGOs or state institutions. As a result, observers reported increased cooperation among all stakeholders and overall awareness of human trafficking. To further raise awareness, in 2024, the center conducted nationwide outreach on its role in addressing trafficking issues. While the center served as a referral mechanism for victims of violence, including trafficking, the government did not have a formal NRM to standardize the identification and referral of trafficking victims and define the roles and responsibilities of different stakeholders, resulting in a somewhat fragmented system. Bjarkarhlíð provided guidelines for identifying victims in locations where victims received assistance, such as health clinics. The police provided identification and referral procedures requiring them to contact welfare services in the municipality and the Ministry of Social Affairs and Labor (MOSL) to coordinate victim care and placement. The Directorate of Immigration (DOI) provided comprehensive SOPs for screening and identifying victims in the asylum process, which some police districts also used for victim identification. Experts recommended developing and implementing an NRM to standardize and strengthen victim identification and referral and ensure the timely provision of services.

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. Furthermore, in 2024, experts reported long wait times — up to two months — at Bjarkarhlíð for victim consultations as a result of limited staffing and the increase in trafficking victims seeking referrals for assistance. In 2024, nearly 70 trafficking victims received assistance from social services, marking a multi-year increase from 21 victims in 2023 and 12 in 2022. Municipal social service agencies provided services and financial assistance to victims, and the MOSL reimbursed the municipalities for all associated expenses. 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 victims. In 2024, the government allocated 29.5 million ISK ($213,470) for service agreements with the two shelters, a significant increase from 5.2 million ($37,630 million) in 2023. In southern Iceland, the government maintained a counseling and support center for victims of violence against women and girls, 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. Child protection authorities provided guidelines on identifying potential child trafficking victims for professionals working with children, and an MOJ-led task force and the National Agency for Children and Families provided information on identifying trafficking indicators among children. In addition, DOI SOPs included referral paths for and processes applying to potential unaccompanied child trafficking victims. Experts recommended the government establish a formal NRM to standardize the identification of child trafficking victims across institutions and relevant stakeholders and ensure it considered the special needs of child victims. In 2024, various government agencies developed written procedures for screening and identifying unaccompanied child trafficking victims. In addition, in 2024, child protection services trained its staff on the vulnerabilities of child trauma, including trafficking. Child trafficking victims received support, such as forensic interviews and medical examinations, at Barnahus — a multidisciplinary center, offering a coordinated, child-sensitive approach to preventing re-traumatization during investigations and court proceedings. All six child trafficking victims 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 social 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. In 2024, social services spent approximately 4.5 million ISK ($32,560) on financial aid, safe housing, and travel support for the safe return of victims to their country of origin, a significant increase from 2.75 million ISK ($19,900) in 2023. However, in 2024, observers criticized the government for deporting four trafficking survivors back to their country of origin and into uncertain conditions after immigration authorities rejected their asylum applications. To address challenges within the asylum process, the DOI trained authorities on interviewing techniques and managing suspected trafficking cases. All trafficking 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 allowed victims to file civil suits against traffickers for compensation and obtain restitution from traffickers in criminal cases.

The government marginally increased prevention efforts.

The MOJ maintained a 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 country’s ongoing NAP. The government continued to implement its existing NAP, which included action items focused on bolstering public awareness, education, and institutional knowledge, and began drafting an updated NAP for 2025. In 2024, the government provided the Icelandic Red Cross five million ISK ($36,180) 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 potential trafficking cases. In 2024, the hotline referred five potential trafficking cases to police. 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 criminalizing the purchase of commercial sex and prescribing penalties of a fine or imprisonment for up to one year. 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.

In recent years, labor trafficking cases in Iceland have risen, raising awareness among the public and increasing calls for more measures to combat the crime. In 2024, observers, including media and members of parliament, recommended the government develop a comprehensive NAP to combat labor trafficking, specifically addressing identification and assistance and evaluating laws on foreign employment rights. Observers reported police did not have the personnel or time to investigate labor trafficking cases and could not manage more than one case at a time. Subsequently, trade unions played a major role in identifying labor trafficking cases and conducting workplace inspections. Additionally, the Directorate of Labor (DOL) maintained a three-person team to respond to suspected trafficking cases and educate government employees on trafficking and identifying potential victims. The DOL continued to post information on the rights of foreign workers in Iceland and the resources available to them on its website. 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. 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 in the domestic labor market with substandard pay, accommodations, or working conditions, and to develop a legislative framework on the issue.

Trafficking affects all communities. This section summarizes government and civil society reporting on the nature and scope of trafficking 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. The government reports populations vulnerable to trafficking include asylum-seekers, migrants, children, persons with addictions, persons who are homeless, and persons who identified as lesbian, gay, or bisexual. Sex trafficking victims typically originate from Africa, Europe, Southeast Asia, and South America and labor trafficking victims from Southeast Asia and Eastern Europe. Traffickers increasingly use technology, including 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 from Asia, Africa, Central Europe, and South America 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. Migrant workers in construction, manufacturing, 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, massage parlors, 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 the Russia-Ukraine war and seeking sanctuary in Iceland are vulnerable to trafficking.