Some market participants were shocked by the results of the PwC Global Economic Crime Survey 2018 as it show a dramatic raise in the AML risk for insurance companies.
As per the reported results, 62% of firms were exposed to fraud or financial crime with in the last 24 months.
That number represents a significant increase versus previous version in 2016 (37%) and 2014 (35%).
This issue add up to the report produced by the EU showing that the systemic AML risk of the Union has been increased by not harmonised supervision and by noting certain products as low risk by default.
The risk of money laundering and tax fraud was highlighted as serious by Mr. Jeppe Kofod, a co-autor of a special report from the anti-tax fraud committee.
As per reported information the understanding of insurance (and in specific life insurance) as low to medium risk facilitated access to such products to criminals, making need for specific measures to address the inherited risk related to such products.
Source
https://www.riskscreen.com/kyc360/news/financial-crime-and-the-insurance-industry/
