Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

Agency Designs Money Laundry Ticket

By Allison Bell

X
Your article was successfully shared with the contacts you provided.

The Financial Crimes Enforcement Network has unveiled a draft of a form that life insurance companies might end up using to report suspicious transactions to regulators.[@@]

FinCEN, an arm of the U.S. Treasury Department, has posted a proposed version of the form, Form 108 – Suspicious Activity Report by Insurance Companies, on the Web at //a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-21916.pdf

FinCEN officials estimate in a discussion of the form that about 1,200 companies will spend about 2 hours each reporting about 1,200 transactions that may have something to do with efforts to launder money associated with terrorism, drug trafficking or other illegal activities.

The 2-page form comes with 4 pages of instructions.

Question 23, which deals with “suspicious activity that can be identified,” includes boxes for clues such as “bribery/gratuity,” “little or no performance concern,” “identity theft” and “unusual viatical sales.”

In the instructions, FinCEN emphasizes in bold type that“the reporting financial institution should not include legal disclaimers in the narrative” description of the suspicious activity.

FinCEN also warns insurers filling out the form that federal law forbids them from notifying any person involved in the transaction being reported about the report.

Public comments about the draft form are due Jan. 3, 2006.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.