Regulators Issue Patriot Act Bulletin
NU Online News Service, April 11, 10:19 a.m. EST?The National Association of Insurance Commissioners has approved a bulletin alerting insurance companies to their responsibilities to prevent money laundering under the new USA Patriot Act.
The federal statute, formally titled the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, was enacted in response to the terrorist attacks of Sept. 11, noted NAIC President and Iowa Insurance Commissioner Terri Vaughan.
Ms. Vaughan declared that the Patriot Act strengthens the country's ability to combat terrorism as well as to prevent and detect money laundering.
"As regulators of the insurance industry, we are doing our part to alert companies of their obligation to comply with the government's new regulations," she said.
To that end, the NAIC highlighted the sections of the Act that affect the insurance industry:
? Section 352 amends the Bank Secrecy Act (BSA) by requiring that all financial institutions establish an anti-money laundering program.
This section becomes effective April 24, and all insurance companies must be in compliance with the law by that date, the NAIC noted.
? Section 326 amends the BSA by requiring the Secretary of the Treasury to adopt minimum standards for financial institutions on the identity of customers that open accounts.
The NAIC said that the Treasury Department is supposed to issue final regulations regarding this requirement by Oct. 26, 2002.
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