Delay On Anti-Money-Laundering Rules For Industry Is Welcome
That sigh you heard was the collective expression of relief by the insurance industry, which has been given a reprieve of as much as six months before having regulations imposed to prevent potential money-laundering.
The issue was raised by passage of the USA Patriot Act, approved last year by Congress in response to the Sept. 11 terrorist attacks. Under the law, the U.S. Treasury Department was ordered to develop regulations to discourage and detect money laundering.
The law mandated all industries defined as financial institutions to have anti-money-laundering programs in place by April 24. But the day before the deadline, Treasury announced that it would defer applying any standards on the industry for up to six months while it studied the rules to be imposed and their potential implications.