Posted: Wed Jul 11, 2007 5:33 am Post subject: Money laundering activities!
Guyz! I am looking for some information regarding the latest anti-money laundering regulations associated with the insurance companies. At the same time, I'd be grateful if anyone tells me about the sort of transactions that the insurers scrutinize in order to maintain compliance with the policyholders.
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Thanks, for raising such an important issue in the ampminsure forum. The new anti-money laundering program is reviewed and amended by the Financial Crimes Enforcement Network ("FinCEN"), Department of Treasury
The revised anti-money laundering program requires the insurance companies to report any suspicious transaction of $5,000 or more. However the monitoring is applicable only to the ‘covered policies'. It has excluded the insurance companies from mandatory reporting on less risky policies.
‘Covered policy' includes- 1) permanent life insurance other than group life insurance 2) annuity contract other than group annuity plan. 3) Policies having ‘cash value' or investment features.
The new anti-money laundering law requires the insurance companies to do the following:
1) They have to involve their senior management in this process.
2) They have to conduct periodic testing of the AMLP.
3) The insurance companies were given the authority to design and develop their own system to check and prevent money laundering.
4) While snooping for suspicious transactions the insurance companies have to consider all the relevant information they have about their clients.
5) The law requires the insurance company to implement it directly and through their brokers or agents. The law also requires the companies to bring the activities of their agents under their purview as they deal with the clients directly.
6) All the companies have to appoint one Compliance Officer, who will be responsible for administering the program.
However as Juanita had mentioned, they were relieved from mandatory reporting of all financial transaction. The AMLP is only limited to the ‘covered policy'.
Money laundering can cause a severe damage to a country's economy. And with the upsurge of terrorist activities it is becoming a growing concern for all the government across the globe. Although, my friends have touched-upon almost all the points on anti-money laundering law, I also want to make a little contribution towards it. The rule had made some additional obligations for the insurance companies to follow.
The law requires the insurance companies to maintain the AMLP report in writing. Also, they should be in a position to make the report available to the Treasury department on request. The companies also need to review their policy periodically to make sure that it is complying with law requirements. Furthermore, the companies have to conduct training for their employees so that they can spot a suspicious transaction and raise the alert.
Posted: Tue Sep 25, 2007 9:17 am Post subject: use of insurance co. for ML
Money Launderers are always one step ahead of the monitoring body. We need fist understand how do the money launderers use the insurance companies for carry out their activity. First is understand the products offered by the companies. The attributes of the products, offered by the insurance companies are the gateway for launderer. For eg unlimited topups, free lookup period, multi jurisdiction policies, premium payment trough wire transfer etc. Based on the usability and flexibility the product offers the launderer layouts his plan. The companies needs to have a system in place that monitor the transaction of the cust on policy level and product level. This will give you insight about cust transaction pattern/ behaviour. This insight can be used for the benefit of the business also. You can reach me sudarshan_3367@rediffmail.com
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Exactly. Laundering money can be relatively easy for someone who familiarizes themselves with the regulations and doesn't act stupid. I personally don't agree with money laundering rules and such as I believe the true crime should be the only arrestable offense; but that is a whole other issue.
I'd never dream someone to launder through an ins co but it doesnt surprise me!
