The Tribune

The Bahamas Insurance Association (BIA) was represented at the recent Financial Action Task Force (FATF) Private Sector Consultative Forum (PSCF) dealing with financial crime.

Emmanuel Komolafe, its chairman, attended the high level meeting from April 23-24 at the United Nations Office on Drugs and Crime in Vienna, Austria. The Forum discussed FATF initiatives aimed at combating money laundering and countering the financing of terrorism.

The BIA was invited by the FATF, via the Attorney General's Office, to participate. Given recent Bahamian discussions on the anti-money laundering/counter terror financing (AML/CFT) regime with respect to the insurance sector, the industry felt it ought to be represented on the global stage.

The PSCF is an annual meeting hosted by the FATF, where issues affecting the private sector and non-governmental entities subject to anti-money laundering and counter-terrorism financing obligations are discussed.

The FATF, which sets global regulatory standards in the financial crime fight, believes these meetings enable it to better understand how such legal requirements are affecting the private sector.

This year, the Forum focused on global priorities for anti-money laundering/counter terror financing in 2018; the risk-based approach for the life insurance sector and securities sector; non-profit organisations; the risk assessment process; the Mutual Evaluation process; money transmission/remittance businesses; de-risking; Fintech/Regtech; Digital IDs and virtual currency.

There was a specific session focused on updates to the RBA (risk-based assessment) guidance for the life insurance sector, which was issued in 2009. There was a general consensus among participants that the insurance sector poses a low risk for money laundering/terror financing abuse within the financial services industry.

And, within the already low-risk insurance sector, the money laundering/terror financing risk within the non-life insurance niche is very low when compared with life and investment-related insurance products.