C7 Flashcards
What happens when you are acting in an international market
There will be overseas regulators to contend with
Insurers will be expected to get info about a country’s rules and regulations before doing business there
What do regulators require
Regular reporting of risks written within their jurisdiction including
• premiums paid
• taxes applicable
• claims arising
What do insurers need to plan
How they will meet these obligations
how to provide data evidence that they are complying
Implement systems and controls to meet regulatory requirements
What is a sanction
A ban
A restriction imposed by certain governments to forbid dealings with certain individuals businesses and governments
Why May sanctions be imposed
To protect democracy
Restore peace
Enforce respect for human rights
Political pressure
What are financial sanctions
Can take the form of prohibiting the transfer of funds or the freezing of assets
Who implements financial sanctions in the uk
OFSI
Office of financial sanctions implementation
What is crystal
System the Lloyd market uses to find out which countries that are subject to sanctions
You can come off this list
Which country are we related to in regards to sanctions
US excluding Cuba as the US does trade with Cuba (trade ban)
What is the export control order
Requires certain licences for the movement of arms or other military hood between two counties outside the uk especially if uk insurer is insuring those goods
What is is dirty money
Money acquired through illegal means
What is money laundering
Cleaning dirty money to make it legitimate to use
What are the 3 stages of money laundering
Placement- putting money in financial system
Layering - many transactions to create misdirection of the whereabouts of the money
Interigation - criminal can access the money and its clean
What acts mention money laundering
Criminal justice act 1993 - made it a criminal act
proceeds of crime act 2002
Prison sentence of 14 years and or unlimited fine
What are passive money laundering acts
Failing to report
Tipping someone off
Max sentence of 5 years and or unlimited fine
Bodies to prevent money laundering
The National crime agency NCA
The joint money laundering steering group JMLSG
What are firms required to have
An MLRO (money laundering reporting officer)
What does the MLRO do
Report anual or about their systems and controls to prevent money laundering
Such as the client verification or due diligence (checking new clients identity so insure isn’t found fraud)
- photo (individual)
-name, registration, business address (company)
Keep record for at least 5 years
Bribery act 2010 (corruption)
- bribing someone else
-being bribed - bribing a foreign public official
- failing to prevent bribery
Foreign and corrupt practices act 1977
For uk business with ties to the US
Prohibits bribery of foreign governments or political officials
What is GDPR
General data protection regulation
Applied to data controllers
What is a data controller
They say how and why personal data is processed
What is sensitive personal data
Ethnic origin
Political views
Religion
Health
Sex life
Personal Data priciples
- Processed lawfully daily and in a transparent manner in relation to individuals
- Collected to specified purposes nothing further
- Adequate relevant and limited
- Adequate and is kept up to date
- Kept for no longer than necessary
- Processed in a manner that ensures security
What is a lawful basis
Consent
Contract
Legal obligation
Vital interests
Public task
Legitimate interest
Rights for individuals
Right to be informed
Right of access
Right to rectification
Right to erasure
Right to restrict processing
Right to data portability
Right to object
Rights in relation to automated decision making and profiling
What happens in an event of a breach
Company must report it to the information commissioners office (ICO) who can issue fines of up to 17.5m or 4% of a company’s turnover for the most serious data breaches
Solvency II
an EU regulation that sets out risk-based capital requirements for insurers, ensuring they maintain sufficient assets to cover liabilities.
