Regulatory Alerts2018-01-18
Life Insurance Due Diligence Regulation (LV-SoV)
The Financial Market Authority (FMA) issued this regulation to define low-risk life insurance policies eligible for simplified due diligence under the Financial Markets Anti-Money Laundering Act. The rule permits insurers to apply reduced scrutiny to specific policies, such as those with annual premiums under EUR 1,200 or one-off payments under EUR 2,500, as well as certain pension and state-sponsored retirement schemes. Insurers must still monitor transactions for unusual activity and must abandon simplified measures if evidence suggests a higher risk of money laundering or terrorist financing.
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