A summary of the risk assessment of money laundering and terrorist financing for the life insurance sector has been published
The Financial Supervisory Authority (FIN-FSA) has published a summary of the sector-specific risks of money laundering and terrorist financing for the activities of life insurance companies under its supervision.
According to the FIN-FSA’s estimate, the overall risk of money laundering and terrorist financing concerning life insurance companies at the sector level is moderately significant (2/4), the second lowest on a four-step scale.
The majority of premiums written by life insurance companies stems from their endowment policies and capital redemption policies intended as investment and savings products. These products elevate the risk of money laundering and terrorist financing in the sector. As a whole, the risk level associated with the products and services of the life insurance sector was assessed to be moderately significant.
According to the FIN-FSA's assessment, life insurance companies have room for improvement in risk controls, particularly in customer due diligence and actions related to updating customer due diligence information. There is also great variation within the sector in the detection and reporting of suspicious transactions. The FIN-FSA finds it important that companies have sufficient resources to manage risks related to money laundering and terrorist financing.
The FIN-FSA urges life insurance companies to ensure that they have sufficient and proportionate controls in place to mitigate and manage identified risks of money laundering and terrorist financing.
For further information, please contact
- Katri Jokinen, Senior Legal Adviser, telephone +358 9 183 5393 or katri.jokinen(at)fiva.fi
- Pekka Vasara, Head of Division, telephone +358 9 183 5513 or pekka.vasara(at)fiva.fi
Appendix
See also
Risk assessment - Prevention of money laundering and terrorist financing - www.finanssivalvonta.fi