why is financial crime an important issue for the insurance sector and where are the main risks?
The FSA’s financial crime objective (contained in the Financial Services and Markets Act that gives us our statutory powers) is one of 4 statutory objectives we have been given. It complements our 3 other objectives, namely maintaining market confidence, consumer protection, and public awareness. Our financial crime objective has a very broad scope, as it encompasses not only fraud and money-laundering (which includes terrorist finance) but also market misconduct and other crimes such as corruption and sanctions. Our financial crime objective consists of “reducing the extent to which it is possible for a business to be used for a purpose connected with financial crime”. Let me first start by clarifying why we, at the FSA, think it is crucial for the insurance sector to remain vigilant with regards to financial crime risks affecting your industry. Many might take the view that since the general insurance sector is not covered by the Money Laundering Regulations, this area only constitut
