Regulatory Alerts2018-01-18
Added · Updated
Life Insurance Due Diligence Regulation
The Financial Market Authority (FMA) issued this regulation to determine a low risk of money laundering and terrorist financing for specific life insurance operations. This allows insurance undertakings to apply simplified due diligence towards customers or beneficiaries for certain life insurance policies, including those with low annual or one-off premiums, pension scheme policies without early surrender or collateral options, company old-age provision, and state-sponsored or supplementary pension insurance policies. However, insurance undertakings must still sufficiently monitor transactions and business relationships, and they must not apply simplified due diligence if there is information indicating that the money laundering or terrorist financing risk is not genuinely low.