THE INSURANCE Commission (IC) has issued guidelines mandating regulated entities to implement policies versus money laundering and terrorism financing.
According to the Circular Letter 2018-48 or the Anti-Money Laundering and Combating the Financing of Terrorism Guidelines, the IC mandates insurers, reinsurers, insurance and reinsurance brokers, pre-need firms, mutual benefit associations and other Insurance Commission-regulated entities (ICRE) to apply necessary policies preventing and mitigating money laundering and terrorist financing (ML/TF).
“[ICREs must] adopt and effectively implement an appropriate…risk management system that identifies, understand, assesses monitors and controls risks associated with ML/TF,” the guidelines read.
Under the circular, regulated entities are required to implement comprehensive and risk-based ML/TF prevention programs which should include detailed procedures for compliance with and the implementation of the major requirements of the Anti-Money Laundering Act; an effective and continuous training program for responsible officers and employees to enable them to fully comply…
