Insurers face new_anti-money_laundering_rules (1)
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Insurers in Mexico will face new, tougher anti-money laundering requirements issued by the National Insurance and Bonding Commission in July 2012 that take effect in January 2013. The new guidelines will require insurers to update their know-your-client policies and systems to be compliant. Insurers must obtain and retain specific client information for at least 10 years and create an alert system for changes in client transaction profiles. Transactions deemed high risk, such as those involving politically exposed clients, will require special authorization. Reinsurers must also verify foreign ceding entities comply with similar anti-money laundering obligations.
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Insurers face new_anti-money_laundering_rules (1)
- 1. Insurance & Reinsurance - Mexico Insurers face new anti-money laundering rules Author Contributed by Barrera, Siqueiros y Torres Landa SC Carlos Ramos Miranda November 06 2012 As a consequence of new regulatory guidelines, Mexican insurers will face tougher new requirements to assist in anti-money laundering activities. The new guidelines were issued by the National Insurance and Bonding Commission in July this year and will come into effect on January 19 2013. Insurers will need to update their internal 'know your client' policies and systems to ensure that they comply with the new requirements. Files containing information relating to an insurer's clients must comply with the specific requirements and documentation determined by the regulator for each type of client (eg, Mexican individuals, foreign individuals and national or foreign entities). Files must be kept and safeguarded by the insurer for at least 10 years. Insurers will need to create an alert system that facilitates compliance with the new guidelines and issues alerts when a client's transactional profile changes. The guidelines also oblige insurers to obtain important information from their clients, including submitting questionnaires to clients and beneficiaries. All information must be updated periodically. Further, transactions qualified as 'high risk' by virtue of the client (eg, politically exposed clients or foreign residents entering into transactions in a foreign currency) will require special prior authorisation. Among other obligations, insurers must file periodic reports with the commission that indicate all relevant and unusual transactions in which such entities are involved. The new guidelines state that insurance agents will need to comply with the insurer's guidelines for obtaining customer information. However, insurers will be required to ensure that their agents comply with these obligations. The guidelines will also affect reinsurance transactions. Mexican reinsurers will need to verify that foreign reinsurers wishing to cede risks have complied with similar anti- money laundering obligations. In such cases and where no such policies exist, the Mexican insurer must nonetheless comply with its own policies and request the corresponding information from the foreign ceding entity to better understand the nature of the transaction and the client's profile. For further information on this topic please contact Carlos Ramos Miranda at Barrera, Siqueiros y Torres Landa SC by telephone (+52 55 5091 0000), fax (+52 55 5091 0123) or email (crm@bstl.com.mx). The materials contained on this website are for general information purposes only and are subject to the disclaimer. ILO is a premium online legal update service for major companies and law firms worldwide. In- house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription. Register at www.iloinfo.com. Online Media Partners 息Copyright 1997-2012 Globe Business Publishing Ltd