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Knowledge Update
Beyond the Checklist - Anti-Money
Laundering, Sanctions and Corruption
Concerns for the Insurance Sector
Even though there is legislative and markets, products, customer bases and Making globalisation
regulatory focus on anti-money intermediaries. This paper is not seeking work for all -
laundering (AML) and combating the to provide a comprehensive view of
financing of terrorism (CFT) across AML rules for insurance companies 20th CEO Survey by PWC
the globe for over a decade, financial around the world, but it does focus on the
institutions still struggle to meet environment in select countries in three 38% Of CEO’s are very
compliance expectations. In this white regions viz. North America, Europe and confident
paper, key risks, mitigating factors and Asia-Pacific. about short-term
critical considerations for the design, business growth
implementation and improvement of Insurers are generally at lower risk of
an AML/CFT compliance program for exposure to ML and TF as compared 88% Of CEO’s promote
insurance companies are explored. to other types of financial institutions, talent diversity
However, due to lack of awareness about and inclusiveness
As methods of money laundering (ML) existing AML/CFT risks and obligations
and terrorist financing (TF) become all can increase the insurance industry’s 69% Of CEO’s say it is
the more sophisticated in an increasingly vulnerability to this activity. Increasing harder for
interconnected global financial system, fines aimed at institutions and personnel, business to sustain
expectations from regulators continue to it is even more crucial for insurers to trust
evolve. In order to satisfy their regulatory improve their AML/CFT compliance
obligations, financial institutions should strategies on a continuous basis. of CEO’s say
go beyond templates and checklists
to develop a deeper understanding https://www.protiviti.com/sites/default/ 44% globalisation has
of the ever-changing risks of their files/united_states/insights/beyond-the- not helped to close
checklist-aml-protiviti.pdf the gap between
rich and poor
Rise of the Drones of CEO’s plan
Is your enterprise prepared?
52% to increase the
The commercial use of drone technology regulators, financial implications, safety headcount, but
is becoming increasingly popular in a and operational requirements necessary can’t find people
number of enterprises. Currently, the to properly sustain this type of business with right skills
regulatory environment around drone tool, is a matter consider. Unless the of CEO’s are
usage has evolved quickly to keep pace organizations have previous experience
with the technologies being used. If managing aviation operations, the answer 77% concerned that a
management is considering adopting is most probably a reverberating “no.” shortage of skills
drone technology, many factors must On the contrary, rushing to implement could impair their
be well thought-out. This white paper a drone technology without being company’s growth
specifies some of the prospective uses properly prepared in the first place can http://www.pwc.com/gx/en/ceo-agenda/
of drone technology in a commercial result in a legal and financial disaster. ceosurvey/2017/gx.html
environment, including business An uncontrolled drone program can
implications and risk considerations. potentially cause significant damage to the
It addresses critical questions that reputation of the concerned organization.
management must consider before
implementing a drone program. http://www.isaca.org/Knowledge-Center/
Whether most organizations are prepared Research/Documents/Rise-of-the-Drones_
to address the requirements posed by whp_eng_0217.pdf ?regnum=361492
9 INTERNAL AUDITOR - MIDDLE EAST MARCH 2017
