How does the insurance industry comply with anti-money laundering regulations?

The insurance industry in Tennessee must comply with anti-money laundering regulations to protect against fraud, organized crime and terror financing. Insurance companies must put in place systems and procedures to detect, deter and report such activities. Insurance companies must establish a comprehensive anti-money laundering program. This program must include: customer due diligence to identify and verify customer identity; periodic monitoring of customer activity; risk-based procedures to identify suspicious activity; and reporting to the Financial Crimes Enforcement Network (FinCEN). The insurance industry must also maintain detailed records to ensure compliance with anti-money laundering regulations. Such records must include identifying information for customers; record of insurance policies or purchases; records of any money laundering-related activity; and records of suspicious activity. This information must be kept for five years and must be easily accessible for review. Insurance companies must also keep their employees trained in anti-money laundering compliance. These employees must understand the relevant regulations and be able to recognize and report any suspicious activity. In addition to employees, the insurance industry must take steps to ensure that any external parties they work with, such as brokers, agents and other insurers, also comply with anti-money laundering regulations. They must assess any third parties to establish their risk, ensure they have appropriate anti-money laundering programs and receive regular training. The insurance industry in Tennessee must comply with anti-money laundering regulations to ensure that the financial system is free from corrupt and illicit activities.

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How does the insurance industry comply with anti-money laundering regulations?

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