European insurers demand risk-based approach to money laundering

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The European Commission’s anti-money laundering (AML) legislative package must avoid imposing unnecessary burdens on very low-risk sectors such as life insurance, according to Insurance Europe.

The legislative framework was presented last week to the Committee on Economic and Monetary Affairs and the Committee on Civil Liberties, Justice and Home Affairs of the European Parliament.

It includes the launch of an Anti-Money Laundering Authority (AMLA) to coordinate national supervisory authorities and ensure that EU rules are applied consistently by the private sector.

Insurance Europe said the move was “particularly understandable given the nature of the recent AML scandals in the banking sector,” in a new position paper, but also warned that the authority’s powers should be better defined soon. departure.

He stressed the importance of having a risk-based approach to ensure that the framework works in practice and reflects the low risk of money laundering and terrorist financing in the life insurance industry, and the almost non-existent risk for “pure risk” life insurance products.

The body of European insurers also recommended that non-life insurance remain outside the scope of EU law and called for more details to be added to the regulation, rather than leaving so many questions keys to the decision of the Commission or the LBA. .

National supervisors should remain the main point of reference for all obliged entities, he added, as they are required to have a better understanding of their national market – and therefore their authority should in no way be undermined by the LBA.

Image credit: iStock

Author: Huw Morris


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