AMl regimes needed to curb in­sur­ance crime

RISKAFRICA Magazine - - NEWS -

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.

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