The Finnish Financial Supervisory Authority (FIN-FSA) has published a summary of its sector-specific assessment of money laundering and terrorist financing (AML/CFT) risks in the activities of supervised life insurance companies, rating the overall sector-level risk as moderately significant (2/4). The assessment notes that most premiums written in the sector stem from endowment policies and capital redemption policies used as investment and savings products, which elevate AML/CFT risk and contribute to a moderately significant risk level for the sector’s products and services. FIN-FSA also identifies scope to strengthen risk controls, particularly customer due diligence and the updating of due diligence information, and highlights wide variation across firms in detecting and reporting suspicious transactions. It urges life insurers to ensure they have sufficient resources and proportionate controls to mitigate and manage the identified risks.
Finanssivalvonta 2025-06-17
Finnish Financial Supervisory Authority publishes life insurance AML/CFT risk assessment and rates sector risk at 2 out of 4
The Finnish Financial Supervisory Authority (FIN-FSA) rates money laundering and terrorist financing risks in life insurance as moderately significant. Elevated risks stem from endowment and capital redemption policies, necessitating stronger risk controls, especially in customer due diligence and suspicious transaction reporting. FIN-FSA urges life insurers to enhance resources and controls to manage these risks effectively.