FINANCIAL CRIMES ENFORCEMENT NETWORK ISSUES ANTI-MONEY LAUNDERING PROGRAM: WHAT DO INSURANCE COMPANIES HAVE TO DO?

The Financial Crimes Enforcement Network (FinCEN), a Bureau of the U.S. Department of Treasury, has issued a final regulation establishing minimum standards applicable to the anti-money laundering programs which certain insurance companies are required to adopt. In a companion regulation, FinCEN also amended its regulations on Suspicious Activity Reports (SAR) to require that certain insurance companies file SARs. The Secretary of the Treasury has delegated the implementation of the Bank Secrecy Act and rulemaking authority to FinCEN. The issuance of these requirements is a reminder of the seriousness with which the anti-money laundering and anti terrorist financing requirements continue to be taken. There is currently no guidance available for insurance company compliance, although FinCEN is reportedly beginning to work on agreements with state insurance commissioners for purposes of supervision.