Overview of Sanctions Screening in Insurance & Takaful Business industry in Malaysia
Malaysian AML/CFT requirements are applicable to reporting institutions including Insurance and Takaful Businesses carrying on the following activities listed in the First Schedule to the Anti-money Laundering Act (AMLA 2001):
Life Business as defined in the Financial Services Act (FSA) 2013;
Family Takaful Business as defined in the Islamic Financial Services Act (IFSA) 2013;
Insurance Broking Business and Financial Advisory Business as defined in the Financial Services Act (FSA) 2013 in relation to life insurance products;
Takaful Broking business and Islamic financial advisory business as defined in the Financial Services Act (FSA) 2013 in relation to family takaful products;
Non-compliance with sanctions screening can be severe and the ramifications are vast. Insurance firms found to be non-compliance can face loss of licence, financial penalties, reputational damage, criminal liability. loss of business opportunities and of course legal risk.