Insurance companies have until today (Friday September 27) to appoint Anti-Money Laundering control officers as the implementation of the Anti-Money Laundering (AML) Act, begins to take shape.
The Act requires all financial institutions (such as banks and insurance companies) to do rigorous due diligence on their potential clients including establishing their source of income before establishing any business dealing.
This follows the establishment of the Financial Intelligence Authority (FIA) three months ago to oversee and investigate suspected money laundering transactions and take action.
Speaking at the chief executive officers’ breakfast meeting in Kampala yesterday, Insurance Regulatory Authority chief executive officer Ibrahim Kaddunabbi Lubega, said the appointment of AML control officers seeks to ensure that all insurers have robust internal controls and procedures to guard against money laundering.
AML control officers will be charged with ensuring that their respective companies have proper ‘know-your-customer’ guidelines and develop procedures for conducting customers’ due diligence. They must also ensure that suspicious transactions are reported to FIA, ensure continuous staff training and liaise with legal officers to ensure that what is done is in compliance with the AML Act.
Other players in the insurance industry including brokers and loss assessors were given up to Friday next week to have appointed the AML control officers.
SOURCE: Daily Monitor