In the insurance sector, the Compliance function plays a decisive role in preventing money laundering and terrorist financing, risks that are particularly relevant in financial products such as life insurance and capitalisation operations.
The main objectives are to ensure that companies adopt effective policies and controls to identify, monitor and mitigate suspicious activity. The main responsibilities include:
- Knowledge of the Customer (KYC): collect and validate appropriate information on customers and beneficial owners, ensuring that the risk profile is correctly identified.
- Monitoring operations: monitor transactions and identify atypical or suspicious patterns.
- Enhanced due diligence: apply additional measures to high-risk customers, such as Politically Exposed Persons (PEPs).
- Mandatory reporting: report suspicious operations to the competent authorities, complying with legal deadlines and formalities.
- Continuous training: train employees to detect signs of ML/TF and correctly apply internal procedures.
In this way, compliance not only protects the company from legal and reputational risks, but also strengthens market confidence, contributing to the integrity of the financial system in which the insurance sector operates.
Practical examples of suspicious operations in the insurance sector:
- Subscription to life insurance or capitalisation products with high value prizes paid in cash.
- Customers who cancel in advance life or capitalisation policies, requesting reimbursement on third-party accounts.
- Payment of premiums or redemptions involving international transfers from high-risk countries.
- Frequent changes of beneficiaries without plausible justification.
- Use of funds with non-transparent origins or disproportionate to the client's economic profile.