Latest anti-money laundering regulations associated with the insurance companies
The new anti-money laundering program is reviewed and amended by the Financial Crimes Enforcement Network (FinCEN), Department of Treasury
The revised anti-money laundering program requires the insurance companies to report any suspicious transaction of $5,000 or more. However the monitoring is applicable only to the ‘covered policies’. It has excluded the insurance companies from mandatory reporting on less risky policies.
‘Covered policy’ includes- 1) permanent life insurance other than group life insurance 2) annuity contract other than group annuity plan. 3) Policies having ‘cash value’ or investment features.
The program is in effect since May 2006.