The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) endorses improvements in the application of the know-your-customer (KYC) principle to all insurance companies.
Head of Insurance Bureau at the Bapepam-LK Isa Rachmatarwata said the measure aimed to anticipate money laundering practices in the insurance industry.
This is also related to the completion of the draft of the Bapepam-LK Regulaton on Guide to the application of the know-your-customer principle to insurance companies and to Minister of Finance Regulation 30/PMK.010/2010 on the application of the know-your-customer principle to non-bank financial institutions.
This is also to follow up the Decision of the Head of the Center for Financial Report and Transaction Analysis (PPATK) No. 2/4/KEP.PPATK/2003 on Guide to Identification of Suspicious Financial Transactions for Financial Service Providers.
"So far, some companies have improved the application of the know-your-customer principle. The new guide further explains the technical aspects of the implementation."
Isa revealed some insurance companies had reported suspicious transactions made by their customers. However, he could not explain the number of insurance companies reporting the suspicious transactions or the amount of suspicious transactions involved since the data were at the PPATK.
"Some insurance companies have reported the suspicious transactions to the PPATK. Most of the transactions take place in the life insurance industry." (04/wiw)
http://www.bisnis.com/en/business/1id201782.html
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