Two years have passed since insurance companies have been required to comply with the Bank Secrecy Act and still no enforcement actions have been handed down, leaving compliance officers wondering 'When will we see them, and for what?' The 'when' may be soon, according to Brian Mannion, lead counsel for the Office of the Chief Legal and Governance Officer at Nationwide Mutual Insurance Company. Regulators have typically given industries two years to calibrate their programs, and then after that, "the enforcement actions usually begin," he said. Mannion, who previously worked as a BSA officer in a regional bank, spoke with...
Insurers filed 642 suspicious activity reports between May 2, 2006, and May 1, 2007, the first year they were required to do so, the U.S. Treasury Department's Financial Crimes Enforcement Network said in a report issued Tuesday.
The U.S. Treasury Department's Financial Crimes Enforcement Network issued a rule confirming that precious metals dealers and insurance companies are required to maintain anti-money laundering programs.
To meet certain reporting requirements, banks serving as agents to insurance and mutual fund companies often must identify those firms' customers initiating the underlying transactions. That is no easy task, say compliance professionals.
Insurers were on pace to file 280 for the year ended this month, according to a FinCEN study issued last week. That compares with 5,723 SARs submitted by money services businesses in 2002, and 4,267 by securities and futures dealers in 2003, the first years those industries had to file the reports.
Bob Walsh, v.p. of anti-money laundering compliance for AXA Financial, says insurance companies uncertain about their Bank Secrecy Act responsibilities face a number of challenges related to the newness of the requirements and the fact the industry has old systems in place to help them comply.