In recent years, money laundering schemes have found their way into the spotlight through various news leaks. Specific disclosures from renowned lists have recently exposed various laundering schemes, including the Panama Papers and Wikileaks in 2010. These schemes bring questions to light, like why do US firms use places like the Bahamas as offshore financial centers? This list is known as the Paradise Papers.
In 2017, the New York Department of Financial Services (NYDFS) released newly updated Anti-Money Laundering (AML) requirements. These AML regulations aim to decrease the consequences of money laundering in criminal areas such as drug trafficking, human trafficking, terrorism, and other illicit undertakings. Notably, New York AML regulations have a significant global impact.
As online transactions become more widespread, vendors have to watch out for increasing threats every day – especially money laundering red flags arising from the use of cryptocurrencies like Bitcoin and others!
Money launderers are acquiring more and more ways to exploit systems anonymously – especially with cryptocurrencies.
The Covid-19 pandemic has affected lives in a multitude of ways. Since March 2020, the rate of cyber-crimes has been estimated to increase by 42%, making substantial use of money mules.
With the issue of “dirty money” seemingly being worldwide, it comes as no surprise that even the least corrupt countries come face-to-face with the problem. Money laundering spares no countries and seems to find its way into less corrupt nations, even more so than others.
What you definitely need to know about Anti-Money Laundering (AML) in the Insurance Industry in 2021
Money laundering has become a serious issue for the insurance industry. Anti-money laundering (AML) supports insurance firms preventing money laundering and complying with regulations.
Politically exposed persons (PEPs) are persons with prominent public positions or functions. Domestic PEPs and foreign PEPs are vulnerable to money laundering.
An AML risk assessment forms the basis of applying the risk-based approach in any organization. Performing an AML risk assessment enables an organization to understand how, and to what extent, it is vulnerable to money laundering and terrorist financing.
The risk-based approach is central to the effective implementation of AML concepts. A risk-based approach means that organisations such as banks and financial institutions identify, assess, and understand the money laundering and terrorist financing risk to which they are exposed, and take the appropriate mitigation measures in accordance with the level of risk.
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