Back Custom print Link Text Only Rich Text Print

  • FC-B.3 FC-B.3 Overseas Subsidiaries and Branches

    • FC-B.3.1

      Insurance licensees must apply the requirements in this Module to all their branches and subsidiaries, including those operating in another jurisdiction. Where local standards differ, the higher standard must be followed. Insurance licensees must pay particular attention to procedures in branches and subsidiaries in countries that do not or insufficiently apply the FATF Recommendations and Special Recommendations and do not have adequate AML/CFT procedures, systems and controls (see also Section FC-7.1).

      Amended: October 2015
      Amended: January 2007

    • FC-B.3.2

      Where another jurisdiction's laws or Regulations prevent an insurance licensee (or any of its foreign branches or subsidiaries) from applying the same standards contained in this Module or higher, the licensee must immediately inform the CBB in writing.

      Amended: January 2007

    • FC-B.3.3

      In such instances, the CBB will review alternatives with the insurance licensee. Should the CBB and the licensee be unable to reach agreement on the satisfactory implementation of this Module in a foreign subsidiary or branch, the insurance licensee may be required by the CBB to cease the operations of the subsidiary or branch in the foreign jurisdiction in question.

      Amended: January 2007

    • FC-B.3.4

      Financial groups (e.g. an insurance firm with its subsidiaries) must implement groupwide programmes against money laundering and terrorist financing, including policies and procedures for sharing information within the group for AML/CFT purposes, which must also be applicable, and appropriate to, all branches and subsidiaries of the financial group. These must include:

      (a) The development of internal policies, procedures and controls, including appropriate compliance management arrangements, and adequate screening procedures to ensure high standards when hiring employees;
      (b) An ongoing employee training programme;
      (c) An independent audit function to test the system;
      (d) Policies and procedures for sharing information required for the purposes of CDD and money laundering and terrorist financing risk management;
      (e) The provision at group-level compliance, audit, and/or AML/CFT functions of customer, account and transaction information from branches and subsidiaries when necessary for AML/CFT purposes; and
      (f) Adequate safeguards on the confidentiality and use of information exchanged.
      Amended: January 2018
      Added: October 2015