Internal policies and controls
Appointment of a Principal Compliance Officer
Internal audit/control
All of the above
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Answer is Wrong!
The correct answer is D. All of the above.
An AML programme of an insurance company includes the following:
- Internal policies and controls: These are the policies and procedures that an insurance company has in place to prevent money laundering. They should be designed to identify and report suspicious activity, and to ensure that all transactions are properly recorded and monitored.
- Appointment of a Principal Compliance Officer: The Principal Compliance Officer is responsible for overseeing the implementation and effectiveness of the AML programme. They should have the necessary knowledge and experience to identify and mitigate money laundering risks.
- Internal audit/control: The internal audit function should regularly review the AML programme to ensure that it is effective. They should also report any weaknesses or areas for improvement to the Principal Compliance Officer.
In addition to these three key elements, an effective AML programme should also include the following:
- Training for staff: All staff should be trained on the AML risks and how to identify and report suspicious activity.
- Customer due diligence: Insurance companies should conduct customer due diligence on all new customers, including verifying their identity and source of funds.
- Recordkeeping: Insurance companies should keep records of all transactions for at least five years.
- Reporting suspicious activity: Insurance companies should report any suspicious activity to the Financial Intelligence Unit (FIU).
By implementing these measures, insurance companies can help to prevent money laundering and protect the integrity of the financial system.