Insurance Firms and Brokers Must Identify Pension Plan Participants
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In a move to enhance transparency in financial transactions, the Maldives Monetary Authority has issued regulations requiring insurance companies and brokers to identify individuals who enter into pension insurance contracts as part of their employment or professional activities.
Required Information
Insurance firms and brokers must obtain and verify certain information from customers who have entered into pension insurance contracts that do not contain a surrender clause and cannot be used as collateral for a loan. The required information includes:
- Full name
- Address
- National identity number or passport number
- Account number
These regulations apply to all insurance companies and brokers operating in the Maldives, and failure to comply may result in penalties and fines.
Other Financial Professionals Must Also Identify Customers
In addition to insurance firms and brokers, other financial professionals are also required to identify their customers in specific situations. These include:
- Real estate dealers: must identify parties involved in buying or selling property
- Dealers in precious metals and stones: must identify customers receiving cash payments above a certain threshold
- Lawyers, notaries, accountants, and other independent legal professionals: must identify parties when preparing or carrying out transactions involving real estate, client money, securities, or other assets
- Independent accountants, auditors, and tax advisors: must identify parties when preparing or carrying out transactions on their behalf
- Trust and company service providers: must identify parties when providing services such as formation, registration, or management of legal persons
Money Transfer Services Must Also Comply
The regulations also apply to financial institutions that provide money or value transfer services. These institutions must obtain and verify certain information from customers, including:
- Full name
- Address
- National identity number or passport number
- Account number
- Name of the financial institution of origin
In addition, these institutions are required to maintain all information provided by customers when acting as intermediaries in a money or value transfer involving three or more financial institutions. Failure to comply may result in penalties and fines.
Importance of Compliance
The Maldives Monetary Authority has emphasized the importance of compliance with these regulations, stating that they are aimed at enhancing transparency and preventing money laundering and terrorist financing.