AMl regimes needed to curb insurance crime
According to The Monitor in Botswana, Africa’s insurance industry has not been as exposed to white-collar crime as other industries, yet stakeholders are still advised to partner with financial institutions to expose criminals and prevent the problem from intensifying.
Speaking at the Southern African Insurance Regional Conference held in Botswana (15 – 16 August), director of the country’s Financial Intelligence Agency in the Ministry of Finance and Development Planning, Jackson Madzima, said, “Stakeholders need to establish Anti-Money Laundering (AML) regimes as it will help curb crime in the industry.”
Although money laundering is not as prevalent in the insurance industry as in non-banking financial institutions, the risks are increasing. “Institutions that handle value should install strong AML regimes and more effective AML sensitisation and training critical to such institutions,” said Madzima.
Madzima highlighted that international vehicle crime is becoming a growing issue across borders and is of major concern in the insurance market. He detailed how cloned vehicles are smuggled between countries and registered in more than one country.
“Between May and July this year, 25 foreign vehicles were impounded because they were tampered with or suspected, and in some cases used, to transport dagga,” Madzima added.