AML/CFT guidelines
Circular No. IRDA/F&I/CIR/AML/028/01/2012,
dated 27-1-2012
Attention is drawn to clause 3.1.1 (xiv) of the Master Circular 2010 on AML/CFT guidelines which reads as under:
“Insurance companies are required to conduct detailed due diligence while taking insurance risk exposure to individuals/entities connected with countries identified by FATF as having deficiencies in their AML/CFT regime ….. Insurance companies have been advised further that while using the FATF Public Statements being circulated through the insurance councils, insurers should go beyond the FATF statements and consider publicly available information when identifying countries which do not or insufficiently apply the FATF Recommendations”.
2. In continuation of the aforesaid stipulations, insurance companies are hereby directed to apply similar measures on countries considered as high risk from terrorist financing or money laundering perspective based on prior experiences, transaction history or other factors (e.g., legal considerations, or allegations of official corruption).
3. The above requirement shall be implemented with immediate effect. Insurance companies are also advised to amend their AML/CFT policy suitably.
