ICP 22 Anti-Money Laundering and Combating the Financing of Terrorism

The supervisor requires insurers and intermediaries to take effective measures to combat money laundering and terrorist financing. The supervisor takes effective measures to combat money laundering and terrorist financing.


Part A: Where the insurance supervisor is a designated AML/CFT competent authority


22.1
The supervisor:
  • has a thorough and comprehensive understanding of the ML/TF risks to which insurers and/or intermediaries are exposed;
  • uses available information to assess the ML/TF risks to the insurance sector in its jurisdiction on a regular basis; and
  • applies a Risk-Based Approach (RBA) consistent with FATF Recommendations.


22.2
The supervisor:
  • issues to insurers and/or intermediaries enforceable means on AML/CFT obligations consistent with the FATF Recommendations, for matters which are not in primary legislation;
  • establishes guidance that will assist insurers and/or intermediaries to implement and comply with their respective AML/CFT requirements; and
  • provides insurers and/or intermediaries with adequate and appropriate feedback to promote AML/CFT compliance.


22.3

The supervisor has an effective supervisory framework to monitor and enforce compliance by insurers and/or intermediaries with AML/CFT requirements.


22.4

The supervisor regularly reviews the effectiveness of the measures that insurers and/or intermediaries and the supervisor itself are taking on AML/CFT. The supervisor takes any necessary action to improve effectiveness.


22.5

The supervisor has effective mechanisms in place which enable it to cooperate, coordinate and exchange information for AML/CFT purposes with other domestic authorities as well as with supervisors in other jurisdictions.

22.5.1    
Effective prevention and mitigation of ML/TF is enhanced by close cooperation within a supervisor’s organisation and among supervisors, the FIU, law enforcement agencies and other relevant authorities. Mechanisms of cooperation, coordination and exchange of information among relevant authorities should be documented and normally address:
  • operational cooperation and, where appropriate, coordination ; and
  • policy cooperation and, where appropriate, coordination.

22.5.2    

Where the supervisor identifies suspected ML/TF in insurers or intermediaries, it should ensure that relevant information is provided in a timely manner to the FIU, any appropriate law enforcement agency and other relevant authorities.

22.5.3    

The supervisor should take all necessary steps to cooperate, coordinate and exchange information with the other relevant authorities. The supervisor should communicate with the FIU and appropriate law enforcement agency to ascertain any concerns it has and any concerns expressed on AML/CFT compliance by insurers and intermediaries, to obtain feedback on trends in reported cases, and to obtain information regarding potential ML/TF risks to the insurance sector.

22.5.4    

To promote an efficient exchange of information, the supervisor should consider identifying within its office a point of contact for AML/CFT issues and to liaise with other relevant authorities.

22.5.5    

The exchange of information for AML/CFT purposes is subject to confidentiality considerations (see ICP 3 Information Sharing and Confidentiality Requirements).


Part B: Where the insurance supervisor is not a designated AML/CFT competent authority


22.6

The supervisor is aware of and has an understanding of ML/TF risks to which insurers and/or intermediaries are exposed. The supervisor liaises with and seeks to obtain information from the designated competent authority relating to AML/CFT by insurers and intermediaries.


22.7

The supervisor has effective mechanisms in place which enable it to cooperate, coordinate and exchange information for AML/CFT purposes with relevant domestic authorities as well as with supervisors in other jurisdictions.