Iceland’s Struggle Against Organised Crime: A Grim Report
The analysis division of the National Commissioner of Police has published its first comprehensive report on organised crime in Iceland in four years — and the picture it paints is not a comfortable one. Criminal groups have not just appeared; they have embedded themselves and grown, with their numbers up 50% over the past decade. Authorities now count around twenty such groups operating in the country, varying widely in size and structure but sharing the same basic purpose.
Some of these groups grew out of long-standing friendships; others have direct ties to international criminal organisations. The report traces a clear escalation in the seriousness of criminal activity, and Karl Steinar Valsson, head of the analysis division, points to the so-called Rauðagerði case as the moment things shifted. That incident — a brutal execution carried out outside a man’s home — marked a new low in Iceland’s criminal landscape.
“This was a clear execution, part of a violent settling of accounts,” Valsson said, describing how the old unwritten limits on behaviour have since disappeared. Criminal groups have been quick to exploit any weakness they find, and they have been particularly aggressive in targeting children, young people, and asylum seekers. During the period covered by the report, twelve thousand foreigners arrived in Iceland looking for work or protection — and that, too, has been exploited.
“This changes everything completely. Our systems are not equipped to handle this influx, creating difficulties that criminals are quick to capitalise on. To them, human life holds little value,” Valsson said.
Violence has also become more brazen. Incidents are happening in public — restaurants, open streets — with little apparent concern for bystanders. “In a remarkably short time, we’ve seen a rise in brutality,” he added.
Drugs remain the backbone of organised crime’s finances. The report notes that the vast majority of drugs worldwide move by sea, yet in Iceland only a tiny fraction of incoming containers are scanned — using equipment that has been in operation for sixteen years. That gap is something criminal networks are well aware of.
“The market for drugs is relatively stable, and drug seizures have had limited impact. What matters most is seizing the financial proceeds, and that is the direction we need to pursue,” Valsson explained. This is not a problem unique to Iceland. As Europol’s director has pointed out, no country can tackle it alone — international cooperation is not optional, it is necessary.
“Fundamentally, this is a significant societal challenge, especially given the alarming connections to our youth,” Valsson said. The report highlights that the main criminal threat in Northern Norway currently comes from Swedish gangs, which have repeatedly used minors to carry out violence — a warning Iceland would do well to take seriously.
That pattern is already appearing here. “The signs we see in Sweden have started to surface here, necessitating urgent intervention,” Valsson said.
Iceland’s ties to organised crime groups in Spain and Southern Europe are well established, but the landscape is shifting. Nordic gangs are increasingly treating Iceland as a new territory worth moving into.
“Spain has supplanted the Netherlands as a key hub, although the use of drug mules from there has declined,” Valsson noted. Swedish gangs in particular are not just looking toward Iceland — they are also advertising violent services, including targeted attacks on police officers.
“Last summer, we turned away four individuals at the border based on intelligence that they were en route to commit serious offences,” Valsson revealed.
The report also flags a troubling gap between what is happening on the ground and what the courts are delivering. Under existing legislation, only two convictions for organised crime have been secured — a number that bears no relation to the scale of the problem. Valsson is calling for the law to be updated to keep pace with how these groups actually operate.
“Criminals now seek expert advice on how to optimise their operations for maximum profit. Although the current provisions were relatively recent, they no longer suffice, and securing convictions has eluded us,” he said.
The report also takes aim at Icelandic courts for granting anonymity to people who purchase prostitution — a practice Valsson argues works against efforts to address the issue. “This is an Icelandic peculiarity and not seen elsewhere. Rather than offering anonymity, publishing names could serve as a deterrent,” he said.
The report lays out a situation that has been building for years. What happens next depends on whether Iceland’s institutions — legal, judicial, and law enforcement — can move fast enough to catch up.
