IRDAI vide Circular bearing reference no. IRDAI/IID/CIR/MISC/202/11/2023 dated November 21, 2023 issued Circular on “Procedure for implementation of Section 12A of “The Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 and section 51A of Unlawful Activities (Prevention) Act, 1967” (“Circular”).
Background:
Reference is drawn to para 16 of Master Guidelines on Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT), 2022 dated August 1, 2022 and IRDAI Circulars Ref no. IRDAI/IID/CIR/MISC/86/4/2023 dated April 19, 2023 and ref. no. IRDAI/IID/CIR/MISC/175/10/2023 dated October 9, 2023.
The aforesaid prescriptions inter-alia requires insurers to implement financial sanctions related to terrorism and terror financing as well as proliferation financing against persons or entities designated by the UN Security Council Resolutions, as per the list circulated by MEA from time to time. In order to ensure that the sanctions are effective and designated individuals are not able to divert or utilize the targeted funds and assets, it is important that the sanctions are imposed “without delay” as required in different International Conventions. Accordingly, the interpretation of the term “without delay” has been clarified by the Circular.
Key highlights of the Circular:
The term “without delay” in the context of all sanctions related to Terrorism and Terror Financing as well as Proliferation Financing means preferably on the same business day but not later than 24 hours in any case.
A copy of the Circular has been attached herewith for your ready reference .
Source category: IRDAI
Attachments
- /2023/308_Master_Guidelines_on_Anti-Money_Laundering_20221.pdf
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