Chapter I. Conditions for Authority of Penalties, Sphere of Application of Penal Law et al.
Art. 6
3. Offences against the interests of Icelandic citizens or persons resident in Iceland, if committed outside the criminal jurisdiction of other States under International Law.
[4. For violations of para. 2, 3 and 4 of Art. 165 and also for homicide, bodily harm, deprivation of freedom and other acts of violence committed in connection with violations of these provisions and for conduct to which the international Convention of 23 September 1971 for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation and a Protocol thereto of 24 February 1988 applies. Legal action under this clause shall, however, only be taken if ordered by the Minister of Justice.]
Passive personality jurisdiction
EDIT.