Ins Industry Responds to Patriot Act
Monday, May 27th, 2002 Legislation & RegulationThe insurance industry is preparing to adopt new policies and guidelines in efforts to safeguard their assets from money laundering-a decision that was brought upon due to the impending Patriot Act, legislation that cuts off funding to terrorist cells, according to the Associated Press. The law will apply to financial-services firms, jewelers, travel agents, auto dealers, telegraph companies and some real estate firms. On April 24, banks and securities firms were forced to adopt anti-money laundering policies, as well as add an internal complains officer and create a program to track their compliance. Mutual funds, credit cards and check-cashing firms have until July to follow suit, and other business, including insurance companies and travel agencies, were given a temporary exemption while they wait for the Treasury Department to draft up regulations for those businesses.
