Fraud Summary - Reykjavik: March to August 2009

UNCLAS REYKJAVIK 000193

SIPDIS

DEPT FOR CA/FPP
DHS FOR CIS/FDNS
DEPT PASS KCC WILLIAMSBURG KY

E.O. 12958: N/A
TAGS: KFRD CVIS CPAS CMGT ASEC IC
SUBJECT: Fraud Summary - Reykjavik: March to August 2009


1. SUMMARY: Iceland is a low-fraud country with no identifiable,
consistant fraud patterns involving U.S. passports or visas. No
signficant changes or fraud trends were noted in Iceland during the
reporting period March 1 to August 31, 2009. END SUMMARY.

COUNTRY CONDITIONS
--------------

2. Iceland, a stable democracy with a dynamic consumer economy,
suffered an economic meltdown in October 2008. The banking sector
collapsed and the Icelandic Government turned to the International
Monetary Fund (IMF) for assistance. This was a marked change from
the economic boom Iceland had experienced from several years of
strong economic growth spurred by economic reforms, deregulation,
and low inflation. Despite the recent economic collapse, Iceland is
not generally characterized by social conditions which create
widespread fraud. Iceland has a proportionally large foreign-born
population of approximately 12 percent. This group consists of both
naturalized Icelandic citizens and permanent residents. Integration
into Icelandic society by non-native populations can vary widely
depending on individual circumstances and factors such as language,
culture, employment and housing. Iceland participates in the Visa
Waiver Program (VWP) and most Icelandic citizens travel to the U.S.
using their Machine Readable Passports (MRPs) and an approved
Electronic System for Travel Authorization (ESTA). Most Icelandic
passports and national IDs are machine-readable and Iceland started
to produce bio-metric passports in 2006. Obtaining fraudulent birth
certificates or other registry items is difficult since all records
are computerized, centrally stored, and easy to verify.

NIV Fraud
--------------

3. NIV fraud is minimal in Iceland, and Post did not discover any
confirmed cases of NIV fraud during this reporting period. Post
pays careful attention to applicants seeking visas for extended
visits, young Icelandic applicants applying for a B1/B2 (with the
intention of working as baby sitters),"new Icelanders" (who only
recently obtained Icelandic citizenship),third-country nationals
resident in Iceland, and non-resident NIV applicants. During this
reporting period, post received NIV applications from citizens from
39 countries. The most significant third country national groups
are citizens of Poland and Russia.


4. Post receives approximately two I-275 "turnaround" reports from
DHS each month, mainly for previous overstays on the Visa Waiver
Program or evidence of intended illegal employment.

IV Fraud
--------------

5. Post did not uncover any cases involving IV fraud during this
reporting period. The IV unit's main fraud concern is family based
IV applications from third-country nationals with foreign birth,
marriage and police certificates.

DV Fraud
--------------

6. Post did not uncover any cases involving DV fraud during this
reporting period. All DV winners in FY 2009 were Icelandic citizens
and documents proving family relationships are easily verified by
the Icelandic authorities.

ACS and U.S. Passport Fraud
--------------

7. U.S. passport fraud is minimal at post. False claims to U.S.
citizenship and photo-substituted identification documents are the
main fraud concerns in the ACS unit. Lost or stolen passport cases
are frequent as the numbers of U.S. visitors to Iceland have
steadily increased over the last five years. Local authorities are
diligent about turning in found U.S. passports to the Consular
Section.

Adoption Fraud
--------------

8. Post does not handle any adoption documents.

Use of DNA Testing
--------------

9. DNA testing is readily available and not susceptible to fraud.
Socially, it is very common for Icelanders not to marry and a large
percentage of children are born to unmarried parents. Icelandic
authorities only require DNA tests when the father disputes
paternity or the paternity of a child is unknown.

Asylum and Other DHS Benefits Fraud
--------------

10. Post did not uncover any cases involving asylum fraud during
this reporting period. Iceland has a low asylum approval rate as
all international flights to Iceland are from countries
characterized as safe havens (USA, Western Europe, and Canada).
Alien Smuggling, Trafficking, Organized Crime, Terrorist Travel
--------------

11. Iceland is a destination country and possibly a transit point
for small numbers of alien traffickers and asylum seekers from the
Baltic States, Eastern Europe, China, and Africa. A report
published in September by the Icelandic Red Cross estimates that
there were between 59 and 128 cases of human trafficking to Iceland
in the past three years. Icelandic border authorities devote
considerable attention to suspicious travelers from outside the
Schengen Area, but are limited in their ability to detain citizens
from Schengen countries for questioning.

DS Criminal Fraud Investigations
--------------

12. Post did not refer any cases to the Regional Security Office
(RSO) for criminal investigations during this reporting period. The
Consular Section and RSO maintain a strong working relationship.

Host Country Passport, Identity Documents and Civil Registry
--------------

13. Iceland issues biometric passports both domestically and
overseas at their embassies and consulates. Icelandic documents are
characteristically secure and easy to verify through a computerized
record keeping system.

Cooperation with Host Government Officials
--------------

14. Cooperation between Post and the Icelandic authorities is
excellent. The Consular Section has a particularly strong working
relationship with the Border Police at Keflavik International
Airport who have willingly allowed us to examine documents using
their top of the line fraud detection equipment whenever we have
requested it.

Ares of Particular Concern

--------------

15. Post pays careful attention to the increasing numbers of
third-country nationals applying in Iceland. We have encountered
attempts by immigration lawyers to avoid perceived rigorous
adjudication procedures by flying in H1B and L applicants from other
parts of the world for the sole purpose of having them apply for
visas in Iceland in the expectation of fast and easy issuance. Post
continues to discourage third country national first-time applicants
from applying in Iceland.

Staffing and Training
--------------

16. Post has one consular assistant, Helga Magnusdottir, who is
designated as the primary fraud prevention analyst, in addition to
her normal ACS and IV duties. Helga attended a one-day training
class on fraud prevention at Embassy Stockholm in May 2007. The
sole consular officer at Post is the Fraud Prevention Manager. All
four LES in the Consular Section are expected to be aware of fraud
and report any possible cases to the Consular Officer.


17. For questions regarding fraud prevention at Embassy Reykjavik
please contact Consular Officer Kristyna Rabassa -
rabassakl@state.gov or 354-562-9100 x2287.



WATSON