(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 section 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.
