Competent authorities: means all state authorities authorized to combat money laundering and terrorist financing, each within the scope of their jurisdiction. Financial Action Task Force: The Financial Action Task Force, which deals with the prevention of money laundering and terrorist financing.
In November 1995, SAMA issued its first set of guidelines relating to anti-money laundering operations to all banks operating in the Kingdom. Therefore, recognizing the international and legal oversight efforts to combat the phenomenon of money laundering, SAMA updated its 1995 guidelines and in 2003 issued a more comprehensive set of "rules governing anti-money laundering and counter-terrorist financing".
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The company must be aware that the insurance sector is exposed to transactions whose aim may be money laundering and terrorist financing. Companies must categorize activities and customer categories according to the level of risk relevant to the possibility of money laundering and terrorist financing.
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In addition, the specific types of operations must be consistent with the identification of customers in order to develop a comprehensive and integrated approach to money laundering and terrorist financing and develop a customer identification test that specifies this. Companies must set a minimum value for operations that require an inquiry into possible money laundering activity or terrorist financing, the minimum value should not be less than 10,000 SR, and if an operation is greater than 10,000 SR, or a complex unusually large transaction or unusual patterns of transactions , which have no apparent or visible economic or legal purpose, or transactions to or from countries that do not sufficiently apply FATF recommendations and have no economic or visible legal purpose (indicators listed in Annex 1 should be taken into account), require such an operation a maximum effort to inquire about customers and the purpose of the operation.
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Companies must put down the results of the investigation in writing and keep such findings available for at least five years. Any such amount must be collected as per bank transactions such as cheques, points of sale, direct transfer, etc.
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If the acquired company or third party maintains a customer survey for all its customers, including information relevant to the customer's data, and if the company has no doubts about the relevance of the available information. If the company inquires about the customer due diligence carried out by the acquired company or third party, so that there is no doubt about compliance with the measures and restrictions to prevent money laundering and terrorist financing.
In order to know the nature and quality of legal personality, in relation to the relationship or the insurance business, as stated below, it is necessary to obtain as much information and documents as possible. A copy of all required documents in accordance with the regulation and administrative rules of the government body. The company must ascertain the address of the applicant/beneficiary by using appropriate measures (such as receiving a copy of the electricity or telephone bill.
34; + 0$ .B6 . to determine the type of client that may be exposed to above average risks relevant to anti-money laundering and anti-terrorist financing measures. Request made by an actual customer to establish a new relationship or make a radical change to the nature of the current relationship. The existence of unusual activities or contrary to the usual practice of the customer according to the information available in the company.
The third party must be an agent, broker or belong to any insurance service provider. The Company may rely on a third party to carry out Customer Due Diligence measures, provided that the relevant standards are met. In all cases, the responsibility for inquiring about the customer's identity remains with the company and not with a third party.
The company must develop clear policies to determine whether the third party has an acceptable level of reliability. Receive copies of documents and information relevant to the due diligence measures of the third party. Take the necessary measures to ensure the provision of the third party with documents and data related to customer due diligence procedures when requested, and determine through those documents the responsibility of the company in writing and set all documents and data available as soon as it is requested and without any delay, in a way to enable the company to make sure of the customer due diligence carried out by the third party.
Ensure that the third party is licensed, supervised and controlled by a supervisory and auditing body, and applies the requirements for customer due diligence procedures, as well as record-keeping measures in accordance with. They should include customer due diligence procedures, record keeping and reporting of suspicious and unusual transactions. Companies must take appropriate internal control measures to ensure continued compliance with those rules.
The internal audit and/or inspection department at the company must review the effectiveness of the anti-money laundering and counter-terrorist financing program in order to evaluate compliance with applied measures and recommend the updating of standards to comply with the development of anti-money laundering and methods and techniques for counter-terrorist financing. Companies should create an internal inspection team to determine, prevent and combat money laundering and terrorist financing. In the case of companies with less than 50 employees, the internal inspection team may be one within the audit department or the internal inspection.
Develop ongoing training plans for all employees regarding anti-money laundering and anti-terrorist financing. Companies must determine the key positions that can be targeted for money laundering and terrorist financing. The compliance manager must also maintain a record which includes all internal reports relevant to anti-money laundering and terrorist financing.
The money laundering and terrorist financing reporting officer is responsible for implementing the reporting measures submitted to the FIU. If the money laundering and terrorist financing reporting officer decides not to report to FIU, he must document the reasons in detail. The Company must keep a register of all reports to the money laundering and terrorist financing reporting officer, including all internal comments and all analysis of transactions.
Employees, managers, officials and all relevant stakeholders must respect confidentiality and should not disclose any piece of information about any suspicious transaction submitted or to be submitted to the FIU. Reports are only available to relevant employees, as any warning to customers is considered a breach of confidentiality and a violation. In the event of notification to the FIU, the company must take full care not to inform the customer of the notification, and must continue to deal with him normally until instructions are sent from the insurance supervisory department at SAMA.
If an operation without a clear economic or regulatory objective is revealed, its background must be queried, and results must be submitted in writing to FIU. If SAMA informs the company that a certain country does not sufficiently apply FATF's recommendations, the company must classify all work relationships made by this country in the high-risk category that the application of the measures referred to in article (61) of the rules are determined, necessity. The Company must have a clear idea about the persons included in the UN terrorism list.
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Companies should pay particular attention to commercial relationships and activities with companies and individuals, including beneficiaries working in or through countries that do not implement or partially implement the FATF recommendations.
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Companies must keep documents for ten years or more, from the end date of the activity or the working relationship with insured parties, beneficial owners, and data collected through the customer due diligence procedures, provided that the documents are paper or electronic copies of the following:.
The customer classified in one of the risk levels should be considered as a "high risk" customer, with the possibility to change the classification to a lower risk level, if the customer's situation is acceptable, the change is proposed by the person in charge person , and was approved by the company's senior management. In the event that a customer has been categorized as a "high risk" customer, but the company sees it as necessary to maintain the relationship, it must lift the customer's due diligence procedures and place them under permanent surveillance, and the level of risk is reviewed on an annual basis, and after the approval of senior management. EE . a) To adopt the rules and regulations of the Kingdom regarding money laundering and terrorist financing, as well as the recommendations of the FATF, to the level accepted by the laws and regulations of the host countries.
The company should pay particular attention to the application of paragraph (1) of this article to its branches and subsidiaries in countries that do not or insufficiently apply the recommendations of the FATF, including countries that are considered non-compliant. In the event that there is any discrepancy between the anti-money laundering and terrorism financing requirements in the Kingdom with host countries of the Company's affiliates or subsidiaries, the Company must apply best practices to its affiliates and subsidiaries to the level accepted by the laws and regulations of host countries . In the event that the laws and regulations of the host country conflict with those of the Kingdom, such as the inability of the branch or subsidiary to commit to the highest requirements, the head office must notify SAMA and all follow instructions.
Annex 1: Typical Insurance Money Laundering and Terrorism Financing Indicators
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Suspicious Transaction Report Form in English
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