New rules call for insurers to take money laundering precautions against terrorists

[JURIST] The US Treasury Department [official website] Financial Crimes Enforcement Network [official website] Monday released [press release] the final draft [text] of rules requiring certain insurance companies to launch anti-money laundering campaigns to frustrate efforts of terrorist groups. The rules, which also define which insurers will be subject to the requirements, are mandated by the federal Bank Secrecy Act [text] as amended by the 2001 Patriot Act [text; JURIST news archive]. The rules call for companies to train employees in money laundering detection techniques, establish clear policies on identifying risks and effective precautions, and seek independent audits of their practices. The rules also specify that companies must report any suspicious activity to the government. Securities traders already abide by money laundering regulations and are not subject to the new rules; companies that sell group life insurance policies or group annuity contracts are also exempt. AP has more.

 

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