17 hours 55 minutes ago

http://www.thenationonlineng.net/2011/index.php/news/8521-insurers-to-pay-n500-000-for-money-laundering-infraction.html

Insurance companies that fail to comply with the regulation on money laundering would pay a fine of N500,000, the National Insurance Commission (NAICOM) has said.

The Commission disclosed this in its guidelines for Anti-Money Laundering issued to insurance operators.

NAICOM said insurance companies effecting transfers, payment or remittance to foreign insurance companies, re-insurance and other firms, must obtain letter of attestation from it, before consummating such transactions.

It urged operators to pay special attention to large transactions that have no apparent or visible economic purpose.

The guidelines state: “Insurance companies are required to pay special attention to all complex, unusual large transactions or unusual patterns that have no apparent or visible economic or lawful purpose. Example of such transactions or pattern of transactions include significant transactions relative to a relationship or transactions that exceed certain limits.

“Insurance companies are required to examine as far as possible the background and purpose of such transactions and to set forth their findings in writing. They are to report such to NAICOM.

“Non compliance with any of the provisions stated in the guidelines shall attract a fine in the sum of N500, 000 under section 49 of NAICOM Act 1997. This is in addition to any other specific punishment under the provision of the Anti-Money Laundering legislation”.

The guidelines warned insurers not to establish a business relationship until all relevant parties to the relationship have been identified and the nature of the businesses they intend to conduct have been ascertained.

The Commissioner for Insurance, Mr Fola Daniel, said NAICOM would continue to keep a tab on the operations of insurers to ensure they are not used as an emissary by fraudulent individuals to launder stolen money.