Kathmandu. Insurance companies will now have to submit a report of suspicious transactions to the Insurance Authority immediately.
This provision has been made through the Directive on Prevention of Money Laundering, Terrorist Activities and Financial Investment in The Construction or Expansion of Weapons of Mass Destruction, 2082 issued by the Authority. Now the insurer will have to conduct an inquiry and submit the suspicious transaction or activity report immediately as per the ‘STR/SAR guidelines’ issued by the Financial Information Unit.
According to the provisions of the directive, if the competent authority receives new facts or information that appears suspicious in the case of the details or information of any person or institution in connection with the investigation of an offence, the insurer will have to update the customer identification or confirmation by informing the Financial Information Unit as additional information.
According to the directive, risk assessment, customer identification, transaction and risk-based system should be done while adopting arrangements including identification and reporting of suspicious transactions.
Similarly, in the directive, the insurer has made a preliminary analysis of the suspicious transaction and if high-ranking people are involved, then the suspicious transaction report should be given to the Financial Information Unit by categorizing it into STR/ PEP, and other STR.
A system should be developed to identify suspicious transactions by the customer and his suspicious activities. If the customer tries to make any suspicious transaction, it should be investigated and the report related to such activity should be sent to the Financial Information Unit immediately.
On the basis of risk, indicators related to the identification of suspicious transactions should be prepared and implemented and such indicators should be updated in a timely manner. In the case of a person who is unable to comply with the provisions related to customer identification as per the prevailing law, there is a clear provision in the directive not to accept the insurance proposal or establish a business relationship.
If a customer is suspected of being involved in money laundering or terrorist activities, but if he is found to be suspicious while proceeding with the customer identification process, then the insurer will have to send the suspicious transaction or activity report to the Financial Information Unit without going ahead with the customer identification process.
While sending the report of suspicious transaction, arrangements should be made to send the report from an officer other than him if the details of the family or close relative of the implementing officer of such insurer have to be sent.
