Why is the Financial Crimes Enforcement Network issuing a regulation requiring insurance companies to establish anti-money laundering programs?
As with all of our regulations requiring the establishment of an anti-money laundering program, we are issuing this regulation to better protect a class of financial institutions in this case, the insurance industry from potential abuse by criminals and terrorists, thereby enhancing the protection of the U.S. financial system generally. The characteristics of financial products, including certain insurance products, make them potentially vulnerable to those seeking to launder money. This regulation is a key step in ensuring that the Bank Secrecy Act is applied appropriately to these businesses. Recognizing the need for a more comprehensive anti-money laundering regime, Congress passed and the President signed into law the USA PATRIOT Act, which, among other things, requires that all entities defined as financial institutions for Bank Secrecy Act purposes establish anti-money laundering programs. An insurance company is defined as a financial institution under the Bank Secrecy. The USA
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