1. This has reference to Master Guidelines on AML/CFT, 2022 issued by the Authority vide ref: IRDAI/IID/GDL/MISC/160/8/2022 dated 1st August 2022.
2. In this regard, on review, certain provisions of the Master Guidelines shall stand modified as mentioned below.
A) After para 2.2, the following para shall be inserted, namely -
"2.2A In case there is a variance in Client Due Diligence or AML/CFT standards specified by IRDAI and the standards specified by regulators of the host country, foreign branches/majority-owned subsidiaries of the regulated entities shall adopt the more stringent requirements of the two. If the host country does not permit the proper implementation of AML/CFT measures consistent with the home country requirements, financial groups shall apply appropriate additional measures to manage the Money Laundering /Terrorist Financing risks, and inform IRDAI."
B) After para 4.5, the following para shall be inserted, namely -
"4.6 Financial groups shall implement group-wide programmes against ML/TF, which should be applicable, and appropriate to, all branches and majority-owned subsidiaries of the financial group. The same shall include:
(a) policies and procedures for sharing information required for the purposes of CDD and ML/TF risk management;
(b) the provision, at group-level compliance, audit, and/or AML/CFT functions, of customer, account, and transaction information from branches and subsidiaries when necessary for AML/CFT purposes. This should include information and analysis of transactions or activities which appear unusual (if such analysis was done). Similarly, branches and subsidiaries should receive such information from these group-level functions when relevant and appropriate to risk management; and
(c) adequate safeguards on the confidentiality and use of information
exchanged, including safeguards to prevent tipping-off."
C) In the first sub-para of para 8.2.2, the following shall be inserted after the words "previously obtained".
"such that the information or data collected under client due diligence is kept up-to-date and relevant, particularly for high risk clients."
D) The para 8.2.4.2 shall be substituted with the following.
"8.2.4.2 Necessary client due diligence, if required, should be carried out of the policyholders/beneficiaries/legal heirs/assignees including beneficial owner, if any, before making the pay-outs. Insurers shall take reasonable measures to identify and verify the identity of the beneficial owner of the beneficiary including Enhanced Due Diligence, if required, in case the Insurers determine that a beneficiary presents a higher risk, at the time of payout.
In insurance business, Insurers shall, in addition to the........