How often must there be independent testing of an insurance companys AML program
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This content is from the eCFR and is authoritative but unofficial. Show Displaying title 31, up to date as of 11/30/2022. Title 31 was last amended 11/21/2022.
eCFR Content § 1025.210 Anti-money laundering programs for insurance companies.(a) In general. Not later than May 2, 2006, each insurance company shall develop and implement a written anti-money laundering program applicable to its covered products that is reasonably designed to prevent the insurance company from being used to facilitate money laundering or the financing of terrorist activities. The program must be approved by senior management. An insurance company shall make a copy of its anti-money laundering program available to the Department of the Treasury, the Financial Crimes Enforcement Network, or their designee upon request. (b) Minimum requirements. At a minimum, the program required by paragraph (a) of this section shall: (1) Incorporate policies, procedures, and internal controls based upon the insurance company's assessment of the money laundering and terrorist financing risks associated with its covered products. Policies, procedures, and internal controls developed and implemented by an insurance company under this section shall include provisions for complying with the applicable requirements of subchapter II of chapter 53 of title 31, United States Code and this chapter, integrating the company's insurance agents and insurance brokers into its anti-money laundering program, and obtaining all relevant customer-related information necessary for an effective anti-money laundering program. (2) Designate a compliance officer who will be responsible for ensuring that: (i) The anti-money laundering program is implemented effectively, including monitoring compliance by the company's insurance agents and insurance brokers with their obligations under the program; (ii) The anti-money laundering program is updated as necessary; and (iii) Appropriate persons are educated and trained in accordance with paragraph (b)(3) of this section. (3) Provide for on-going training of appropriate persons concerning their responsibilities under the program. An insurance company may satisfy this requirement with respect to its employees, insurance agents, and insurance brokers by directly training such persons or verifying that persons have received training by another insurance company or by a competent third party with respect to the covered products offered by the insurance company. (4) Provide for independent testing to monitor and maintain an adequate program, including testing to determine compliance of the company's insurance agents and insurance brokers with their obligations under the program. The scope and frequency of the testing shall be commensurate with the risks posed by the insurance company's covered products. Such testing may be conducted by a third party or by any officer or employee of the insurance company, other than the person designated in paragraph (b)(2) of this section. (c) Anti-money laundering program requirements for insurance companies registered or required to register with the Securities and Exchange Commission as broker-dealers in securities. An insurance company that is registered or required to register with the Securities and Exchange Commission as a broker-dealer in securities shall be deemed to have satisfied the requirements of this section for its broker-dealer activities to the extent that the company is required to establish and has established an anti-money laundering program pursuant to § 1023.210 of this chapter and complies with such program. (d) Compliance. Compliance with this section shall be examined by the Department of the Treasury, through the Financial Crimes Enforcement Network or its delegees, under the terms of the Bank Secrecy Act. Failure to comply with the requirements of this section may constitute a violation of the Bank Secrecy Act and of this chapter. eCFR ContentWhat are the requirements of an AML program?At a minimum, an AML Program must be in writing and must include:. Development and maintenance of written policies and procedures, and supervisory controls;. Reasonably designed to ensure compliance with the BSA and assist a firm in detecting and reporting suspicious activity;. Designation of a compliance officer;. What are the minimum standards for a firm's written AML compliance program?An AML program must be in writing and include, at a minimum: policies, procedures, and internal controls reasonably designed to achieve compliance with the BSA and its implementing rules; policies and procedures that can be reasonably expected to detect and cause the reporting of transactions under 31 U.S.C.
What are the five requirements pillars of an AntiWhat are the five pillars of AML compliance?. Designate a compliance officer. The first step to creating an effective AML compliance program is designating a compliance officer. ... . Develop internal policies. ... . Create a training program for employees. ... . Ensure independent testing and auditing. ... . Deploy in-depth risk assessment.. What is the primary purpose for requiring financial institutions to periodically test their AML programs?The primary purpose of the independent review is to monitor the adequacy of the money services business' anti-money laundering program. The review should determine whether the business is operating in compliance with the requirements of the Bank Secrecy Act and the business' own policies and procedures.
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