3. Insurers have a separate obligation to send suspicious activity reports to FinCEN.
Form 8300 is for reporting cash payments which, in many cases, have nothing to do with crime.
Insurers who believe that a large cash payment or other transaction appears highly suspicious are expected to file separate suspicious activity reports.
SAR requirements do not affect group insurance products, charitable annuities, health insurance, term life insurance or reinsurance contracts.
The requirements affect issuers of individual permanent life insurance policies, such as whole life policies and universal life policies; individual annuity contracts; and any other individual insurance product with cash value.
4. Insurers are supposed to tell you what they want you to do about large cash payments and other red flag behavior.
The insurers you work with are supposed to have anti-money laundering programs. These programs should include procedures you can use to notify insurers of potential problems.
5. FinCEN may take a long time to use the information you help register.
Frank Vogl, the co-founder of Transparency International, said in an interview on the PBS show Amanpour & Company on Thursday that FinCEN has few analysts available to review SARs in depth, and that he needed more money and more analysts.
Financial services groups could play a role in helping FinCEN get the resources it needs to use the reports effectively, and they may also be able to help by sharing some of the kinds of tools they use to detect credit card fraud and insurance claim fraud.
6. Increased efforts to detect and arrest kleptocrats can trip up law-abiding people.
Some of the financial services industry’s existing “know your customer” rules can lead to complicated bureaucratic labyrinths for young people starting out or adults moving.
In some European countries, for example, it is often difficult to simply obtain a local bank account suitable for local conditions, as local banks may refuse to file the reports required by US law on foreign account tax compliance for customers. with relatively small checking or savings accounts. .
Organizations such as the Financial Planning Association, Finseca, the National Association of Insurance Commissioners and the National Association of Insurance and Financial Advisors could have a role to play in getting FinCEN’s attention if the new nets kleptocrats catch too many bad fish.
(Image: Sergei Mironov/Shutterstock)
