AML Circular No. 28: Guidance Notes on AML/CFT for Insurance Companies

Anti-Money Laundering Department Bangladesh Bank Head Office, Dhaka. Website: www.bb.org.bd AML Circular No. 28 Date: 21 Asharh, 1418 05 July, 2011

Managing Director / Chief Executive Officer All Insurance Companies Operating in Bangladesh

Guidance Notes on AML/CFT for Insurance Companies

1. In accordance with Section 2(q) of the Money Laundering Prevention Act, 2009, all insurance companies operating in Bangladesh have been included as reporting entities alongside other institutions, and the responsibilities of reporting entities are mentioned in Section 25. Under the authority granted by Section 23(1)(d) of the said Act, guidelines for compliance by insurance companies in preventing money laundering were previously issued via AML Circular No. 18 of this department dated August 10, 2008.

2. Following the decision of the first conference of the Chief Money Laundering Prevention Compliance Officers of insurance companies held on December 23, 2009, a 'Focus Group' was formed comprising suitable representatives from life and general insurance companies, along with the then Insurance Control Department, Bangladesh Insurance Academy, and Bangladesh Insurance Association, to prepare guidance notes aimed at strengthening anti-money laundering and counter-terrorist financing measures.

3. The 'Focus Group' prepared a draft of the 'Guidance Notes on AML/CFT for Insurance Companies' considering the existing legal framework in the country, the size and nature of the insurance business, international standards, and best practices. This draft was finalized after soliciting opinions from all concerned parties and reviewing it by a 'Review Team'. A soft copy of the Guidance Notes on CD has been supplied along with this to all insurance companies, and the Guidance Notes can be downloaded from the Bangladesh Bank website (http://www.bb.org.bd/infobank/infobank.htm) if needed.

4. To reduce the risk of money laundering and terrorist financing through insurance companies, all insurance companies operating in Bangladesh are required to examine their own business scope, size, and nature and prepare their own guidance notes considering the guidelines in the aforementioned Guidance Notes as minimum standards. These must be approved by their respective Boards of Directors and submitted to the Anti-Money Laundering Department, Bangladesh Bank by September 30, 2011, and necessary measures for compliance must be taken by December 31, 2011.

5. It has been advised to inform all parties about this matter.

Yours faithfully,

Enclosure: Soft copy of Guidance Notes on CD.

(Debashis Debnath) General Manager Phone: 7120659