As part of the effort made for Insurance companies to comply with AMLA, they are expected to report transactions more that Ksh.1 million. This is an equivalent of $10,000 and should be reported to the Financial Reporting Centre (FRC). Insurance Regulatory Authority (IRA) highlighted, in its publication, that the industry will now be subjected to the laws on anti-money laundering and combating of terrorism (AML/CFT).
As part of the requirements, insurers are required to carry out due diligence and KYC processes on all their clients. The regulatory body also expects firms to keep a watch on every transaction as far back as 7 years. Reporting officers should also be created and will be responsible for creating and coordinating the AML/CFT program. They are also expected to evaluate and vet suspicious transactions. Additionally, the regulations require insurers to create a compliance policy statement showing the commitment of senior managers to implement measures against money laundering and terrorist financing.
Insurance companies now must ensure the real identity of parties that they have partnerships with. This also includes other entities with whom they have a business relationship with; including their beneficiaries and trusts.
