For money laundering violations, insurers had to pay a fine of N500,000
The National Insurance Commission (NAICOM) said that insurance companies which didn’t obey with the regulation on money laundering had to pay a fine of N500,000,. NAICOM also explained that before consummating such transactions, insurance companies effecting transfers, payment or remittance to foreign insurance companies, re-insurance and other firms, had to get certificate of attestation from it.
According to guidelines that insurance companies had to pay special attention to all complex, unusual large transactions or unusual patterns that have no apparent or visible economic or lawful purpose. For example, transactions or pattern of transactions that exceed a certain limits. NAICOM reported that insurance companies had to check as far as possible the background and purpose of such transactions to set forth their findings in writing.
Under the provisions of law Anti-Money laundering that in section 49 of NAICOM Act 1997, non compliance with any of the provisions stated in the guidelines shall be fined in the sum of N500, 000. Therefore, the guidelines warn insurance to not build a business relationship to all parties involved have been identified and the nature of the business they intend to be tested. Mr Fola Daniel as the Commissioner for Insurance said that NAICOM will continue to protect the operations of insurers so they aren’t used as an emissary by fraudulent individuals to launder stolen money.