The Insurance Regulatory and Development Authority of India on 1st June 2022, has notified the Draft Master Guidelines on Anti Money Laundering/Counter Financing of Terrorism and has invited comments/suggestion from the stakeholders which shall be forwarded to Mr Rakesh Mondal on e mail id rakesh.mondal@irdai.gov.in by 17th June 2022.
The Draft guidelines shall be applicable for all class of Life, General or Health Insurance businesses carried out by the ‘Insurers’ except Re-insurance business carried out by the ‘Indian Insurance company’ or ‘foreign company’ in India.
Every Insurer has to establish and implement policies, procedures, and internal controls that effectively serve to prevent and impede Money Laundering (ML) and Terrorist Financing (TF). To be in compliance with these obligations, the senior management of insurers shall be fully committed to establishing appropriate policies and procedures for the prevention of ML and TF and ensuring their effectiveness and compliance with all relevant legal and regulatory requirements.
Insurers shall, prior to the commencement of each specified transaction shall Verify the identity of the clients preferably using Aadhaar subject to the consent of customer or Verify the client through other modes/ methods of KYC.
Insurer shall examine the ownership and financial position, including client’s source of funds commensurate with the assessed risk of customer and product profile which may include Conducting independent enquiries on the details collected on/provided by the customer wherever required.
