The Faroese flag “Merkið” (“The mark”), created in 1919 but banned until World War II when the Allied Forces needed to distinguish between sea vessels of British occupied Faroe Islands and Nazi occupied Denmark. Here in use during the 2008 Faroese national youth swimming championships in Vágur, Suðuroy, hometown of Pál Joensen. He’ll swim under Danish flag at the London 2012 Olympics, since the Faroe Islands aren’t recognized by IOC, and even spectators banned from bringing it under IOC rules.
“The following is a non-exhaustive list of restricted items which may not be taken into a Venue … flags of countries not participating in the Games”. Source
Sheesh, the thanks you get for having 1/3 of your fleet sunk by mines, subs and planes while bringing them food. Grudge aside, he will be okay ;-)