The Insurance Regulatory Development Authority of India (IRDAI) has extended the time for the implementation of guidelines on anti-money laundering (AML) and counter-financing of terrorism (CFT) to January 1, 2023, according to a circular issued by IRDAI.
The guidelines will apply to all general and health insurers. The master guidelines, covering provisions of the PML Act, rules, and other norms, as amended from time to time, would be implemented from January 1, 2023.
IRDAI recently issued master guidelines on anti-money laundering (AML) and counter-financing of terrorism (CFT). The guidelines were initially scheduled to come into force on November 1, 2022. However, IRDAI extended the timeline after requests from insurers.
“Considering the above request, it is informed that the guidelines will come into force from January 1, 2023, for general and health insurers,” the IRDAI circular said.
IRDAI had issued the master guidelines to consolidate and update the policies on AML and CFT.
As per the provisions of the prevention of Money Laundering Act, 2002, and the Prevention of Money Laundering Rules, 2005, insurers are required to follow customer identification procedures while undertaking a transaction at the time of establishing an account-based relationship and monitor their transactions on an ongoing basis. In addition, insurers would also have to take steps to implement provisions of the PML Act and the PML rules, as amended from time to time, including operational instructions issued in pursuance of such amendments.
