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  • Unusual Transactions or Customer Behaviour

    • FC-2.2.5

      In instances where an insurance licensee’s risk-based monitoring systems identify significant or abnormal transactions (as defined in FC-2.2.2 and FC-2.2.3), it must verify the source of funds for those transactions, particularly where the transactions are above the transactions threshold of BD 6,000. Furthermore, insurance licensees must examine the background and purpose to those transactions and document their findings.

      Amended: January 2022

    • FC-2.2.6

      The investigations required under FC-2.2.5 must be carried out by the MLRO (or relevant delegated official). The documents relating to these findings must be maintained for five years from the date when the transaction was completed (see also FC-6.1.1(b)).

      Amended: October 2007
      Amended: April 2008

    • FC-2.2.7

      Insurance licensees must consider instances where there is a significant, unexpected or unexplained change in the behaviour of policyholders' account (e.g., early surrenders). Insurance licensees must be extra vigilant to the particular risks involved in the buying and selling of second hand endowment policies, as well as the use of single premium unit-linked policies. Insurance licensees must check any reinsurance or retrocession to ensure that monies are paid to bona fide reinsurance entities at rates commensurate with the risks underwritten.

      Amended: January 2007

    • FC-2.2.8

      When an existing customer cancels a policy and applies for another, the insurance licensee must review its customer identity information and update its records accordingly. Where the information available falls short of the requirements contained in Chapter FC-1, the missing or out of date information must be obtained and re-verified with the customer.

      Amended: January 2007

    • FC-2.2.9

      Once identification procedures have been satisfactorily completed and, as long as records concerning the customer are maintained in line with Chapters FC-1 and FC-6, no further evidence of identity is needed when transactions are subsequently undertaken within the expected level and type of activity for that customer, provided reasonably regular contact has been maintained between the parties and no doubts have arisen as to the customer's identity.

      Amended: January 2007