MANILA, Philippines — Insurance firms will undergo risk assessment in a bid to prevent money laundering and terrorist financing that could impact their operations.
In a circular letter, the Insurance Commission (IC) issued the guidelines for the conduct of institutional risk assessment (IRA) among insurance and reinsurance firms and brokers, mutual benefit associations, pre-need companies and health maintenance organizations.
The IC rules require the conduct of IRA at least once every two years or as often as the agency may direct.
This would depend on the level of risks identified in the previous assessment or other relevant anti-money laundering and combating the financing of terrorism developments that may impact their operations.
The IC is also mandated to assist the Anti-Money Laundering Council in supervising the implementation of the Anti-Money Laundering Act (AMLA) and the Terrorist Financing Prevention and Suppression Act.
“It is necessary to identify, assess and understand the money laundering, terrorist financing and proliferation financing risks to which the regulated entities are exposed,” IC commissioner Reynaldo Regalado said.
He emphasized that this would allow IC to focus its supervisory efforts and allocate resources where risks are higher.
Regalado added that the IC would have more impact at the tactical level to assess the money laundering and terrorist financing risks per sector and define the scope and depth of its inspection.
“A risk-based strategy for anti-money laundering and combating the financing of terrorism and proliferation financing will ensure that appropriate measures commensurate with those risks are adopted to mitigate them effectively,” Regalado said.
