From Iceland — Former City Councilman Gets Six Months Probationary Sentence For Money Laundering

Former City Councilman Gets Six Months Probationary Sentence For Money Laundering

Published March 26, 2021

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Screenshot from Kastljós

Iceland’s Supreme Court confirmed the money laundering conviction for former Reykjavík City Councilman for the Independence Party Júlíus Vífill Ingvarsson, Vísir reports, but diminished his sentence from 10 months in prison to six, probationary.

While Júlíus was found guilty in December 2018 in Reykjavík District Court, he has repeatedly asserted his innocence, and appealed the matter. He still denies any wrongdoing.

As reported, Júlús denied guilt in September 2017, telling the court that he believed he was the target of a political attack, accusing the head of the investigation of being a member of the Left-Green Party. However, he admitted that he had not paid taxes on tens of millions of krónur that he had spirited off to an overseas bank account.

Legal proceedings against him began that year, in the wake of the massive Panama Papers leak the year previous.

As documents in the leak revealed, Júlíus established the company Silwood Foundation in Panama in 2014. This company was intended to take care of his account at the bank Julius Bär in Switzerland. In the email communications uncovered in the leak, special emphasis is placed on making sure Júlíus’ part in the company is kept as hidden as possible.

Furthermore, members of Júlíus’ family have accused him of cheating them out of their share of an inheritance from his parents. This windfall he kept hidden from tax authorities, and he kept his financial dealings a secret from the city, despite a legal obligation to report all vested interests.

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