Chapter Seven Flashcards
Sanctions, data protection, money laundering
What is the purpose of sanctions in the insurance market?
Sanctions are imposed to restrict business interactions with certain countries, entities or individuals deemed undesirable.
Why is training important in the context of systems and controls for insurers?
Training ensures that staff understand compliance requirements and the reasons behind the systems and controls in place.
What are the key principles of data protection legislation?
Data protection legislation mandates that personal data must be processed lawfully, fairly and transparently ensuring individuals rights are respected.
What are the main offences under the Bribery Act 2010?
The main offences include bribing another person, receiving a bribe, bribing foreign public official and failing to prevent bribery.
What is the impact of US, EU and UK legislation on insurers in the London market?
These legislations influence how insurers conduct their business requiring compliance with various rules and regulations.
What are financial sanctions and how do they affect insurers?
Financial sanctions can prohibit fund transfers to certain countries and freeze assets, impacting insurers ability to conduct business.
What is the role of the money laundering reporting officer (MLRO)?
The MLRO is responsible for overseeing a firms compliance with anti-money laundering regulations and reporting suspicious activities.
What is money laundering and how do businesses combat it?
Money laundering is the process of making illegally obtained funds appear legitimate and businesses implement controls to prevent such activities.
How does the UK GDPR differ from the previous data protection legislation?
The UK GDPR enhances previous legislations by providing clearer rules on personal data processing and individual rights.
What are systems and controls in the context of insurance businesses?
Systems and controls are internal management tools that help businesses ensure compliance with regulatory requirements.
