Insurers should maintain records of all transactions: Irda

These norms are in conformance to the Prevention of Money Laundering (Amendment) Act 2012

Insurance companies would have to be maintain a record of all transactions, said the Insurance Regulatory and Development Authority (Irda).

In a circular to the chairman and CEO of all insurance companies, Irda said that every reporting entity shall maintain a record of all transactions, including information relating to these transactions.

These norms are in conformance to the Prevention of Money Laundering (Amendment) Act, (PMLA) 2012.

Irda also asked insurers to furnish to the Director within such time as may be prescribed, information relating to such transactions, whether attempted or executed, the nature and value of which may be prescribed.

Companies have been asked to maintain record of documents evidencing identity of its clients and beneficial owners as well as account files and business correspondence relating to its clients.

These records will have to be maintained for a period of five years from the date of transaction between a client and the reporting entity.  Insurers have been asked to revise their Anti-Money Laundering/Countering Financing of Terrorism (AML/CFT) policy in accordance with the above stipulations.