In this white paper, we explore key risks, mitigating measures and critical considerations for the design, implementation and improvement of an AML/CFT compliance program for insurance companies. As money laundering (ML) and terrorist financing (TF) methods become more sophisticated in an increasingly interconnected global financial system, regulators' expectations continue to evolve. Thus, financial institutions must go beyond templates and checklists to develop a deeper understanding of the dynamic risks of their markets, products, customer bases and intermediaries.
Money laundering cases in the insurance industry are increasing. The insurance sector is particularly vulnerable to money laundering due to its size, easy availability and nature of its products, and the structure of its business.