Insurer Money Laundering Regs Held

Insurer Money Laundering Regs Held

By Steven Brostoff, Washington Editor

NU Online News Service, April 24, 12:47 p.m. EST, Washington?The Treasury Department decision to spend additional time studying the issue of applying new anti-money laundering standards for insurers is drawing praise from an industry group.

"We are very pleased that Treasury is looking at a much tighter, industry-specific approach," said Julie Gackenbach, director of federal relations for the Des Plaines, Ill.-based National Association of Independent Insurers.

Insurers, she said, were concerned about the possibility of a "one-size-fits-all" approach to money laundering regulation.

Different financial institutions, Ms. Gackenbach said, face different risks of being used for money laundering. She said NAII will continue to work with Treasury.

The impetus for regulations comes from the USA Patriot Act, which was passed last year in the aftermath of the Sept. 11 terrorist attack. The legislation directed Treasury to develop anti-money laundering regulations that would apply to all financial institutions.

Insurance groups said that they were concerned about facing the same standards as banks, since there is little evidence that insurance is used for money laundering purposes.

Treasury announced yesterday that it would continue studying the application of the anti-money laundering provisions on insurance companies and other industries for up to six months.

Treasury added that it has formed a working group devoted to the insurance industry that will be responsible for drafting regulations tailored to it.