News & Events
The CBUAE has put forth a new guideline regarding Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) for the Licensed Financial Institutions (LFIs) in the insurance sector, which includes insurance and reinsurance companies, agents, and brokers. The guideline clarifies how insurance providers should employ preventive steps to identify, evaluate, observe, and hinder money laundering and the financing of terrorism risks that are relevant to life insurance and other investment-related insurance products. Insurance agents have to conduct, record and maintain risk assessments.
Insurance agents must carry out due diligence, understand client business, and comprehend the purpose of the client's relationship with the operator. Throughout the business relationship, all customers will be monitored for ongoing use of the operator's products or services. Further, if a customer or relationship presents high ML/TF risks, operators must apply enhanced due diligence measures. By implementing the guidelines immediately, Licensed Financial Institutions will be able to assess risks and fulfil their legal AML/CFT obligations efficiently.
The insurance agents should also maintain a transaction monitoring system that is equipped to identify unusual or suspicious activity patterns, as well as any behaviour that appears suspicious or is associated with ML/TF. If they suspect any activity that may be linked to ML/TF or a criminal offence, they should report it directly to the UAE's Financial Intelligence Unit via the "goAML" portal by submitting suspicious activity or transaction reports. AML/CFT compliance programmes should include all of these preventive measures and be supported by appropriate governance, training, and independent audits to ensure they are effective.
Since the guidelines are new and insurance agents are not experts on this, it is advisable to seek assistance from any expert Tax Consultants in Dubai, UAE. With a team of qualified professionals, Reyson Badger, one of the top accounting and auditing firms in the UAE, can develop, implement, and improve your financial and other compliance programs.