Financial Crimes Enforcement Network To Present New Anti-Money Laundering Requirements

December 2, 2005

KANSAS CITY, MO - Representatives of the Financial Crimes Enforcement Network (FinCEN) of the United States Department of Treasury will be attending the National Association of Insurance Commissioners (NAIC) Winter National Meeting in Chicago during the Antifraud (D) Task Force meeting on Monday, December 5, from 9:00 a.m. to 11:00 a.m. to present two final rules that will affect certain insurance companies.

FinCEN representatives will outline requirements for certain U.S. insurers to establish anti-money laundering programs and file Suspicious Activity Reports. The final rules apply to insurance companies that issue or underwrite certain products that present a high degree of risk for money laundering, the financing of terrorism or other illicit activity. This will give state regulators and industry an opportunity to ask questions on specific requirements and enforcement cooperation between state regulators and the IRS.

The insurance products subject to these new rules include:

  • Permanent life insurance policies, other than group life insurance policies;
  • Annuity contracts, other than group annuity contracts; and
  • Other insurance products with features of cash value or investment features.
At a minimum, insurance companies subject to the rule requiring an anti-money laundering program must establish a program that is comprised of four basic elements:
  • A compliance officer who is responsible for ensuring that the program is implemented effectively;
  • Written policies, procedures, and internal controls reasonably designed to control the risks of money laundering,terrorist financing, and other financial crimes associated with its business;
  • Ongoing training of appropriate persons concerning their responsibilities under the program; and
  • Independent testing to monitor and maintain an adequate program.


Source: NAIC