FINANCE - INSURANCE

Insurance commission

CAA fines Onelife €580,000 for failures in AML-CFT systems



Lorum ipsum Photo: Shutterstock

Lorum ipsum Photo: Shutterstock

Luxembourg’s insurance commission (Commissariat aux Assurances) on 21 July announced that it had imposed a fine of €580,000 on OneLife in May 2023 in relation to the law on anti-money laundering and countering the financing of terrorism.

The Commissariat aux Assurances (CAA) on 16 May 2023 imposed an administrative fine of €580,000 on the Onelife Company, a life insurance company in Luxembourg. The fine, which was related to violations of the law on money laundering and countering the financing of terrorism, was announced on 21 July.

The insurance commission stated that the fine was imposed following an onsite inspection in April 2022. It related to clients’ exposure to the risk of fiscal non-compliance. The insurance commission specifically stated that it detected “significant shortcomings” in Onelife’s anti-money laundering and countering the financing of terrorism (AML-CFT) systems concerning life insurance contracts taken out before 2017.

In addition, the CAA also noted that it had identified inadequate surveillance measures, shortcomings in the review and updating of documents, data and information, as well as suspicious transaction reports submitted late to the financial intelligence unit.

Onelife noted on its website the company took “immediate corrective actions accompanied by a comprehensive review of its portfolio” following the audit and the fine. It also reaffirmed its commitment to enhancing its AML-CFT systems.

In its notice, the insurance commission also stated that these shortcomings were observed at the time of the audit, and that Onelife has since implemented remedial actions to address the observed failures, such as verifying and updating documents, data and contract information, and in terms of clients’ tax compliance. The “proper execution” and “prompt reaction” of Onelife was “taken into consideration” by the insurance commission to determine the fine.