Chapter 7: Regulatory processes, systems and controls Flashcards
Define ‘bribery’
Corruption.
Define ‘client verification’
Firms must work to verify that their clients are who they say they are
Define ‘solvency II’
Define ‘systems and controls’
What must syndicates do to comply with foreign rules?
Must obtain information about applicable rules, and must plan, but some guidance is centrally provided by Lloyds
What data is normally collected and coded to identify compliance iwth regulation?
Location of the broker, the risk, tax payable, and whether the business is direct or re
Define ‘sanctions’
Esssentially a ban
Define ‘financial sanctions’
Bans finanical in nature
Define ‘trade sanctions’
Sanctions about trade
Who is responsible for the implementation ad administration of financial sanctions from the UK government?
the Office od Financial Sanctions Implementation (OFSI)
WHo has to abide by EU sanctions?
Members of the EU, and all persons and entities doing trade in the EU
Which special country does the US have sanctions against?
Cuba, and must be complied with by all US citizens, and all branches and subsidaries
What are practical problems with sanctions?
Paying out ransoms to pirates, as it is unclear who they are and where money is coming from
What do export controls do?
Control the exportation of certian goods, such as capital punishment tools or military goods
How do export controls relate to insurance?
If items under export control are beimg insured, they need a license
