Insurance News
- Chinese insurers told to tighten internal control to fight money laundering
Date: 28-Feb-2007 Sources: (Xinhua Online)
The China Insurance Regulatory Commission (CIRC) has urged insurance companies across the country to tighten their internal control for a better combat against money laundering, Shanghai Securities News reported on Tuesday.
Insurance companies were required to identify their clients, record transaction data and report large, suspicious transactions to the central bank's anti-money laundering monitoring and analysis center.
The state insurance watchdog and the central bank were working together to draw up regulations on insurance companies' internal control system, said the report.
China's first anti-money laundering law came into effect on Jan. 1, 2007, under which financial institutions and their branches must improve their internal control system and have it examined by government regulators.
The central bank said it would issue regulations this year to complement the law and extend it to the securities, futures and insurance sectors.
To fight money laundering, the central bank said in November last year that Chinese financial institutions must report cash transactions involving 200,000 yuan (25,000 U.S. dollars) and above or foreign currency cash transactions worth 10,000 U.S. dollars and above.
Meanwhile, financial institutions were also warned to look out for sudden closure of accounts following large transfers, loans paid back ahead of schedule and transactions that do not tally with clients' financial status.
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