On 19 June 2019, the Italian Institute for the Supervision of Insurance (IVASS) issued two Letters to the Market requiring life insurers operating in Italy to send a structured set of information for the supervision of money laundering and terrorism financing risks, with reference to the financial year 2018. The request follows the one that was sent last year for 2017.
In particular, one Letter is addressed to life insurers with their head office in an EEA country that operate in Italy under the freedom to provide services. Those undertakings are required to provide IVASS, by 30 September 2019, with a spreadsheet presenting a breakdown of premiums earned in 2018 by each insurance intermediary, and a cover letter signed by a person duly authorized to represent the undertaking.
The other Letter is addressed to Italian life insurers and to Italian branches of life insurers with their head office in an EEA country or in a third country.
In this case, information to be provided relates to the organizational model adopted, premiums, payouts, risk management and control of money laundering risk, and intermediaries. Moreover, information about the money laundering risk self-assessment has to be provided. To this end, insurers can confirm the self-assessment carried out in 2017 if the risk has not changed substantially.
Information has to be sent to IVASS by 30 September 2019. If their money laundering risk profile has changed substantially, however, the information about the self-assessment can be sent by 31 October 2019.
The two Letters to the market are available below.
DLA Piper Insurance Team in Italy