Transcript Slide 0
Complinet 3rd Compliance & AML Seminar
KSA
Money Laundering and the Insurance Industry:
Trends, Risks, Indicators
23rd March 2011
Lisa Kelaart-Courtney
Head
Compliance Advisory Services
Insurance
Sector
Vulnerabilities
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Insurance sector risks
LOW RISK DOES NOT EQUAL
NO RISK
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Regulatory Focus
There are severe economic and social consequences of
Money Laundering.
• Undermining Financial Systems: Money Laundering
expands the black economy, undermines the financial
system and raises questions of credibility and
transparency
• Expanding Crime: Money Laundering encourages crime
because it enables criminals to effectively use and deploy
their illegal funds
• ‘Criminalising' Society: criminals can increase profits by
reinvesting the illegal funds in businesses
• Reducing Revenue and Control: Money Laundering
diminishes Government revenue and weakens
Government control over the economy
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Benchmarks
International Standards
Organisation
for Economic Cooperation
Development (OECD)
Financial
Action Task Force (FATF)
International
Association of Insurance Supervisors
(IAIS)
International
Basel
Organisation of Securities Commissions
Committee for Banking Supervision
Local Standards
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Decrees
Laws
Executive Regulations
Rules
Guidance
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Defining Customer Due Diligence
The concept of customer due diligence goes beyond
the identification and verification of only the
policyholder –
it extends to identification of the potential risks of the
whole business relationship.
Life cycle – Continuous Vigilance
Before entering
the contract
Testing,
audit,
improvement
Testing, audit,
improvement
Pre contractual &
ongoing business
relationship
Ongoing Due
Diligence
Trigger Events
Testing, audit,
improvement
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