The U.S. Treasury Department will expand the scope of existing anti-money-laundering rules to include life insurers and annuity issuers by June 2006.[@@]
Insurers will have to file a form when cash of $5,000 or more is provided in connection with the purchase of an insurance policy subject to the reporting requirements, according to a copy of the regulation that appears on the Treasury Department Web site.
The new rule exempts agents and brokers, but it will apply whether the purchaser uses $5,000 to buy one policy or $5,000 to buy a total of 2 or more policies.
“This threshold amount is not limited to insurance policies whose premiums meet or exceed $5,000; rather, it includes a policy in which the premium or potential payout meets the threshold,” the regulation says.
The Financial Crimes Enforcement Network, or FinCEN, a Treasury Department agency, started the rulemaking process that produced the final rule in September 2002.
In addition to publishing the final rule, FinCEN has published a draft of a form that insurers can use to comply with the new rule. Insurers will have 60 days to comment on the proposed form before it is approved for use.
The rule will apply to most life insurance products that have a cash value or investment features.