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April 28, 2002 at 08:00 PM
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Insurers have been told in “unequivocal terms” by the U.S. Treasury Department that proposed regulations establishing guidelines to meet requirements of the U.S. Patriot Act will be released within two weeks, says Carl Wilkerson, chief counsel of securities and litigation, with the American Council of Life Insurers.
When the regulations for insurers are published, they will be a cross between regulation for broker-dealers and mutual funds, he adds.
Treasury has also indicated it will be both the “interpreter and enforcer of regulations,” Wilkerson says.
The Patriot Act mandates that all financial services entities have anti-money laundering programs in place by April 24, 2002.
The Treasury Department, which is responsible for creating regulations for the law, released rules for financial services businesses, including mutual funds, credit card companies, and securities brokers and dealers registered with the Securities and Exchange Commission.
However, Treasury said it would defer for no more than six months regulations pertaining to other players, including insurers and investment companies other than mutual funds.
The deferral, according to Wilkerson, was the result of a “tall learning curve” that Treasury officials needed to become better acquainted with the state-regulated insurance industry.
