IRDAI may tighten anti-money laundering framework in the context of insurance

2 Aug 2022 , 09:56 AM

Anti-money laundering regulations in the context of insurers are set to be tightened by the insurance regulator.

The regulations released to update and consolidate anti-money laundering regulations replace the several regulations established in 2013. The primary modification is the elimination of corporate exclusions and waivers from the rules. Therefore, no life, general, or health insurer may request any exceptions from the Reserve Bank of India’s money-laundering regulations.

The Insurance Regulatory and Development Authority has also made the degree of risk assessment a function of the firms’ company sizes.Consequently, “the frequency of executing anti-money laundering and counter funding of terrorism programme review, compliance audit, and risk assessment (must) not be fixed but depends upon risk exposure by the insurer.”

The regulations are being prepared by the regulator in order to allow more domestic financial sector enterprises and international corporations to enter the market. Regarding these hazards, every regulator in the world is increasing the standard.