GFIA Global Federation of Insurance Associations

GFIA has today published a position paper that reiterates its view that policymakers should follow the risk-based approach promoted by the Financial Action Task Force (FATF) when developing any new rules regarding anti-money laundering (AML) and combatting the financing of terrorism (CFT).

Any new rules to fight money laundering/terrorism financing (ML/TF) should only cover life insurance, which has some, albeit very low, exposure to ML/TF risks.

However, GFIA is concerned that some stakeholders are still pushing for AML/CFT rules to also be applied to general insurance, despite the business’ close to non-existent risk exposure to ML/TF risks.

Furthermore, applying AML/CTF rules to general insurance would divert much needed resources and attention from other much higher risk areas.