Amid allegations of insurance products being used for money laundering, the Insurance Regulatory and Development Authority (IRDA) has asked insurance firms to keep records of policy holders / customers & beneficiaries for five (5) years after termination of business relationship.
“The record of documents evidencing identity of customers & beneficial owners as well as account files and business correspondence relating to the customer shall be maintained for at least a period of five years after the business relationship with the customer has ended,” IRDA said on recently.
Insurance companies & agents are also required to maintain the records of all transactions for a period of 5 years from the date of transaction.
The new guidelines are in line with the changes in the Prevention of Money Laundering ( Amendment) Act, 2012.
The insurance sector regulator IRDA is already examining the allegations of money laundering leveled against certain insurance companies & had said action would be taken against the guilty.
Online portal Cobrapost has named a large number of banks and insurance companies for allegedly “running a nation wide money laundering racket”.
The 4 insurance companies which figured in its list are alleged to have violated the know your customer (KYC) and anti money laundering (AML) guidelines.
No comments:
Post a Comment