Fight against money laundering: six insurance intermediaries sanctioned by the Supervisory Authority

As part of its policy to combat money laundering and the financing of terrorism, the Insurance and Social Welfare Supervisory Authority (ACAPS) has published the results of its latest inspection missions. Two insurance companies incur sanctions while six intermediaries have already been sanctioned.

The Insurance and Social Welfare Supervisory Authority (ACAPS) recently published the results of its latest inspections of the insurance sector in the context of the fight against money laundering and the financing of terrorism.

According to ACAPS, these missions are intended to ensure compliance, by those liable, with the provisions of circular AS/02/19, relating to the obligations of vigilance and internal monitoring two years after its entry into force, and to support the subject in their compliance in the fight against money laundering and terrorist financing (AML / CFT), while demonstrating to the FATF (Financial Action Task Force) the progress made by the subject and the Authority.

A total of 21 on-site inspection missions were carried out between the first quarter of 2021 and the first quarter of 2022. Five of these missions concerned insurance and reinsurance companies (EAR), the 16 others concerned insurance intermediaries .

The control carried out by ACAPS revealed that 37% of the intermediaries controlled do not have internal documents formalizing AML/CFT procedures.

Similarly, the majority of these controlled intermediaries declare that they were not aware of the publication of the Authority’s circular no. AS/02/19 relating to the duty of vigilance, 80% of them do not have an AML/CFT risk classification model. Thus, ACAPS decided to issue sanctions against six insurance intermediaries, in addition to a post-mission follow-up for ten others.

During these checks, the authority also noted a breach on the part of the insurance companies: two companies, among the five checked, do not have a filtering tool for people subject to sanctions such as the freezing of assets, two other companies do not have sufficient human resources and an efficient organization to carry out the various anti-money laundering missions.

The inspection missions also revealed that two insurance companies have not set up operational exchange procedures with their partner banks and do not have a real exchange of data with these banks and that no no risk classification automation tool has been implemented or is in the process of being implemented for the five companies audited.

Following these results, ACAPS announced a plan of sanctions against two insurance companies and a post-mission follow-up for the other three.

With regard to insurance intermediaries, the control carried out by ACAPS revealed that 37% of the intermediaries controlled do not have internal documents formalizing AML/CFT procedures.

Similarly, the majority of these controlled intermediaries declare that they were not aware of the publication of the Authority’s circular no. AS/02/19 relating to the duty of vigilance, 80% of them do not have an AML/CFT risk classification model. Thus, ACAPS decided to issue sanctions against six insurance intermediaries, in addition to a post-mission follow-up for ten others.

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