The following Insurance & Reinsurance guidance note Produced in partnership with Marcus Bonnell, and Charlotte Thompson of RPC provides comprehensive and up to date legal information covering:
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:
handling the proceeds of crime
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.
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:
the Proceeds of Crime Act 2002 (money laundering) (POCA 2002) as modified by the Serious Crime Act 2015
the Terrorism Act 2000 (terrorist financing) (TA 2000)
the Counter-Terrorism Act 2008 (money laundering and terrorist financing) (CTA 2008)
As regulated businesses, insurers need to ensure that they operate
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234