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
Clyde & Co LLP © 2011
Insurance sector risks
LOW RISK DOES NOT EQUAL
NO RISK
Clyde & Co LLP © 2011
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
Clyde & Co LLP © 2011
3
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
•
•
•
•
•
Decrees
Laws
Executive Regulations
Rules
Guidance
4
Clyde & Co LLP © 2011
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
6
Clyde & Co LLP © 2011