Yesterday, Iceland’s Prime Minister announced that the government has decided not to bring suit against the UK authorities for the Freezing Order issued against Landsbanki by the UK authorities on October 8, 2008, on the basis of their Anti-Terrorism, Crime and Security Act. The Icelandic government was told by their UK legal counsel that “there was scant possibility that the Icelandic government could have the Freezing Order invalidated by a UK court…[because]… the legislation granted the UK authorities very broad authorization to apply the provisions on freezing of assets.” Though the Icelandic government has dropped its suit at this stage, it has “made a formal request to the UK authorities that the Freezing Order be cancelled” and “intends to examine exhaustively other options for international legal action, including in particular the European Court of Human Rights.”

The Icelandic government also repeated its strong support for legal proceedings by the Resolution Committees of both Kaupthing Bank and Landsbanki against actions taken by the UK Financial Services Authority in October 2008.