NU Online News Service, April 18, 10:54 a.m. — Washington
House Financial Services Committee Chairman Mike Oxley, R-Findlay, Ohio, is urging the Treasury Department to avoid imposing unreasonable anti-money laundering burdens on the insurance industry.
In a letter to Treasury Secretary Paul O’Neill, Oxley says Congress specifically opposed a “one size fits all” approach when enacting the USA Patriot Act in the aftermath of the Sept. 11 terrorist attack.
The act requires financial institutions to establish anti-money laundering programs. The Treasury Department is currently developing regulations to implement the act, including the requirements that will be imposed on the insurance industry.
Oxley says there is little evidence of money laundering being conducted through insurance products.
“It would be particularly difficult to launder money through property-casualty products or life products without cash value,” he writes in his letter.