Қазақстанның қаржы мониторингі © 2010
Questions-answers
question:
According to item 2 of article 16 of the Law “About obligatory Third Party Liability insurance”, an insured person at conclusion of this insurance treaty represents data about himself/insured and documents confirming the data in insurance application. Whereby, I call attention that the data specified in application are established by the legislative acts. It is believed that insurer must not represent other data to the insured! As the result there is a question, if insurer requires additional information from insured to identify the client, will these actions be illegal? Here is the contradiction of norms of legislature?!
answer:
Insurance (reinsurance) organizations, insurance brokers as subjects of financial monitoring, according to article 11 of the Law “About combating legalization (laundering) of illegally-gained income and terrorism financing” (hereinafter referred to as the Law), subjects of financial monitoring elaborate rules of internal control and programs of the realization, and bear responsibility for observance of the rules and realization of the program.
Rules of internal control are elaborated, accepted and executed by subject of financial monitoring taking into account the requirements approved by the Order of the Minister of finance dated February 15, 2010 #57 “About requirements on elaboration, adoption and execution of rules of internal control by subjects of financial monitoring” (hereinafter referred to as the Order).
Hence, insurance (reinsurance) organizations, insurance brokers are obliged to elaborate rules of internal control on the basis of the above stated requirements independently.
question:
At the moment subject of financial monitoring (SFM) has only one person responsible for direction of information to the Committee of financial monitoring (KFM), but in case of vacation or illness is it possible that another employee of SFM, which is entrusted with a duty to direct data to KFM and which has access to SDFO system, can direct data to KFM without official letter to KFM about addition/change of responsible person?
answer:
The Committee on financial monitoring of the Ministry of finance of the Republic of Kazakhstan (hereinafter referred to as Committee) having considered Your address, informs that at change of responsible person it is necessary to specify all data of substituting person that is entrusted a duty on direction of data to the Committee in requisites 2.7 “Full name of the responsible person”, 2.7.1 “Position of responsible person” of form FM-1.
question:
According to the Law of the Republic of Kazakhstan “About combating legalization (laundering) of illegally-gained income and terrorism financing” realization of due diligence by subjects of financial monitoring of their clients id held in accordance with the rules of internal control, hence, the order of realization of due diligence of their clients is established independently by subjects of financial monitoring.
However, taking into account the fact that Committee on financial monitoring of the Ministry of finance of the Republic of Kazakhstan is the authorized body which competence includes control over execution of Kazakhstan legislature about combating legalization (laundering) of illegally-gained income and terrorism financing and control over organization of internal control, I request to give recommendations concerning realization of due diligence of their clients, namely:
- realization of due diligence of their clients by insurance organization including establishing of supposed aim and character of business relations, studying operations realized by a client (except documentary fixation of data about client)
- is it possible that insurance organizations realize due diligence of their clients by using questionnaire for each person?
That is why we ask the Committee on financial monitoring of the Ministry of finance of the Republic of Kazakhstan to:
- represent recommendations to insurance organizations regarding procedures of studying of their clients and other members of operation;
- represent to insurance organizations the recommended form of questionnaire of clients.
I consider that these questions are not regulated be the legislature of the Republic of Kazakhstan and in practice appears many troubles as the result of formal reply of the authorized body subjects of financial monitoring concerning realization of due diligence of clients.
answer:
According toarticle 5 of the Law “About combating legalization of illegally-gained income and terrorism financing” (hereinafter referred to as Law about AML/CFT) insurance (reinsurance) organizations, insurance brokers as subjects of financial monitoring are obliged to take measures on due diligence of its clients in accordance with legislature about AML/CFT.
Thus, due diligence should include realization of such measures as:
1) fixation of data necessary for identification of physical person that realizes operation with money and (or) other property: information of the ID, taxpayer identification number, individual identification number (except for the cases when a client is not assigned taxpayer identification number, individual identification number in accordance with legislature of the Republic of Kazakhstan);
2) fixation of data necessary for identification of legal person that realizes operation with money and (or) other property: data of foundation documents, taxpayer identification number, business identification number (except for the cases when a client is not assigned taxpayer identification number, business identification number in accordance with legislature of the Republic of Kazakhstan), and аaddress of location;
3) fixation of data necessary for identification of beneficiary on operation with money and (or) other property and his representative including taxpayer registration number, individual identification number (if present) of beneficiary and his representative, as well as remark on verification of signature of beneficiary and representative (if present);
4) establishing of supposed aim and character of business relations;
5) regular realization of control of business relations and study of operations carried out by a client through the given subject of financial monitoring.
At the same time in article 13 of the Law about AML/CFT insurance (reinsurance) organizations, insurance brokers as subjects of financial monitoring are obliged to refuse realization of operations with money and (or) other property that are subject to financial monitoring in case it is impossible to take measures provided by subparagraphs 1) - 4) of point 3 article 5 of the given Law.
question:
Identification of a client by insurance company must be realized regarding each client of the company (with whom they conclude insurance agreements, construction contracts, contracts of agency, service contracts, etc.) or regarding only those clients which transactions are subject to financial monitoring?
answer:
According toitem 3 of article 5 of the Law “About combating legalization (laundering) of illegally-gained income and terrorism financing” (hereinafter referred to as the Law) identification of a client by insurance company (SFM) there must be realized due diligence of a client that includes realization of corresponding measures depending on the kind of clients (legal, physical entities, etc.)
At the same time, due diligence should be realized in the following cases:
- Establishment of business relations with client;
- Realization of operations with money and (or) other property that are subject to financial monitoring;
- Presence of reasons to doubt in proxy in data about physical or legal persons received before.