STATE OF NEW YORK
25 BEAVER STREET
NEW YORK, NEW YORK 10004
|Supplement No. 2 to Circular Letter No. 10
September 27, 2002
|TO:||All New York Domestic Insurers|
|RE:||USA PATRIOT Act of 2001 Proposed rule issued by Financial Crimes Enforcement Network (Treasury Department)|
The purpose of this Supplement No. 2 to Circular Letter No. 10 is to inform you that the Federal Financial Crimes Enforcement Network (Treasury Department) issued a proposed rule on September 18, 2002 which would require insurance companies to establish an anti-money laundering program, as specified under Section 352 of the USA PATRIOT Act. An "insurance company" is defined in the proposed rule as any person engaged within the United States as a business in: (1) the issuing, underwriting, or reinsuring of a life insurance policy; (2) the issuing, granting, purchasing, or disposing of any annuity contract; or (3) the issuing, underwriting, or reinsuring of any insurance product with investment features similar to those of a life insurance policy or an annuity contract, or which can be used to store value and transfer that value to another person.
Under the proposed federal rule, a company must establish and maintain a written anti-money laundering program that at a minimum: (i) incorporates internal policies, procedures, and controls based on the companys assessment of its money laundering risks; (ii) designates a compliance officer; (iii) establishes an ongoing employee training program; and (iv) establishes an independent audit function to test programs.
The Treasury Department has invited comments by the industry on the proposed rule within sixty days. For further information regarding the proposed rule, you may contact the Office of Chief Counsel of the Financial Crimes Enforcement Network at (703) 905-3590 or Office of the Assistant General Counsel for Enforcement (Treasury) at (202) 622-1927. Details regarding the proposed rule, as well as specific instructions for submitting comments, are available at http://www.ustreas.gov/press/releases/docs/insurancerule.pdf.
Very truly yours,