Allianz Life Bermuda Limited has been slapped with fines to the tune of US$1.7 million.
In a release, the Bermuda Monetary Authority (BMA) cited the insurer’s “significant” breaches of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 and International Sanctions Regulations 2013, as well as “longstanding and persistent” breaches of the Insurance Act.
According to the regulator, Allianz Life Bermuda failed to adequately comply with the regulations in various areas including systems, customer due diligence, and independent audit functions. The breaches and deficiencies were identified during an onsite review.
The BMA stated: “While the Authority found no evidence of money laundering or terrorist financing, the Authority required the company to remediate these findings within a prescribed time period; however, such remediation was not completed to the satisfaction of the Authority.
“The Authority views these breaches as serious because of their extent and duration, and because they demonstrated a weakness of the company’s controls to ensure full compliance with the regulations and sanctions.”
As for the Insurance Act, Allianz Life Bermuda was found to have demonstrated “a pattern of non-compliance,” with provisions breached spanning eight sections. These include Section 8C, which requires the firm to maintain a head office in Bermuda.
“The circumstances of the [Insurance Act] breaches highlight multiple breaches of the minimum criteria for registration, in accordance with Schedule 1 of the Insurance Act, which highlight the failure of the business of the company to be conducted in a prudent manner,” said the watchdog.
“Further, the Authority determined that the company’s corporate administration was not being carried on with the professional skills appropriate to the nature, scale, and complexity of its activities.”
The company, which has consented to the imposition of the civil penalties, currently holds a Class 3 licence and Long-Term Class C licence.
