The Government of Iceland worked to strengthen domestic border security and counterterrorism capabilities and increased links with neighboring states and in international bodies. The government signed bilateral security agreements in April with Norway and Denmark pledging to increase regional counterterrorism cooperation. The Icelandic Coast Guard (ICG) continued its capacity-building efforts with contracts for the purchase of new air and sea assets and was a founding member of the North Atlantic Coast Guard Forum in October.
In August and September, Iceland hosted two NATO exercises, each involving a counterterrorism component: NORTHERN VIKING 2007 featured separate air defense and ground-based counterterrorism elements; NORTHERN CHALLENGE 2007 was an ICG-hosted event focusing on Explosive Ordnance Disposal and counterterrorism scenarios.
The United States and Iceland held the first post-Naval Air Station Keflovik (NASKEF) round of high level security dialogue talks in June. Iceland-U.S. counterterrorism cooperation increased through the establishment of a formal linkage between the ICG and the U.S. Coast Guard (USCG) First District in Boston. In April, Iceland hosted a USCG International Ship and Port Security (ISPS) Program assessment visit.
The Icelandic government supported multilateral counterterrorism efforts. In May, Iceland joined the Global Initiative to Combat Nuclear Terrorism. Support for the NATO mission in Afghanistan remained strong. While Iceland withdrew its Mobile Liaison and Observation Team from a NATO Provincial Reconstruction Team in May, it continued its deployment at Kabul International Airport and supported NATO/ISAF operations through funding for airlift and other means.
In July, the FATF released an assessment of Iceland's anti-money laundering and terrorist financing regime.