Anti-financial crime requirements for insurers
Produced in partnership with Marcus Bonnell, and Charlotte Thompson of RPC
Anti-financial crime requirements for insurers

The following Insurance & Reinsurance practice note Produced in partnership with Marcus Bonnell, and Charlotte Thompson of RPC provides comprehensive and up to date legal information covering:

  • Anti-financial crime requirements for insurers
  • Money laundering and terrorist financing criminal offences
  • Regulatory compliance
  • The JMLSG Guidance
  • What does the JMLSG Guidance say?
  • Proposed changes to the JMLSG guidance

The Financial Conduct Authority (FCA) has statutory objectives which include the protection and enhancement of the integrity of the UK financial system. The integrity of the system includes it not being used for a purpose connected with financial crime (section 1D(2) of the Financial Services and Markets Act 2000 (FSMA 2000)).

'Financial crime' is defined in FSMA 2000, Part 1A, s 1H(3) and includes:

  1. handling the proceeds of crime

  2. the financing of terrorism

This note does not deal with additional obligations placed on insurers to counter the risk of sanctions breaches, bribery and corruption and general fraud. For further information on trade sanctions in insurance, please see EU/UK financial and trade sanctions for insurers.

Money laundering and terrorist financing criminal offences

It is beyond the scope of this Practice Note to deal in detail with the criminal offences which may be committed in relation to money laundering and terrorist financing but insurers need to be familiar with the provisions of the following statutes in order to avoid criminal liability under them:

  1. the Proceeds of Crime Act 2002 (money laundering) (POCA 2002) as modified by the Serious Crime Act 2015

  2. the Terrorism Act 2000 (terrorist financing) (TA 2000)

  3. the Counter-Terrorism Act 2008 (money laundering and terrorist financing) (CTA 2008)

Regulatory compliance

As regulated businesses, insurers need to ensure that they operate in a manner consistent with their anti-financial crime obligations

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