Life insurance enterprises committing violations on money laundering shall be fined up to VND 100 millions
On November 11, 2019, the Government issues the Decree No. 80/2019/ND-CP on amending and supplementing a number of articles of Decree No. 73/2016/ND-CP dated July 1, 2016 of the Government on details of implementation of the Law on Insurance Business and the Law on amendments to a number of articles of the Law on Insurance Business; Decree No. 98/2013/ND-CP dated August 28, 2013 of the Government on penalties for administrative violation in insurance business and lottery business that has been amended and supplemented a number of articles in Decree No. 48/2018/ND-CP dated March 21, 2018 of the Government.
Accordingly, this Decree supplements one section on sanction for violations against regulations on prevention of money laundering and terrorism financing in life insurance business. To be specific, Life insurance enterprises committing violations on the regulations on identification and updating of client information shall be sanctioned as follows:
- A fine of from VND 20 million to 30 million shall be imposed for failure in updating of client identification information such as information of clients open accounts or set up transactions with the financial organizations, clients who make infrequent transactions of high value or carry out the transaction of electronic money transfer but lack the information about the name, address, account number of the originator…
- A fine of from VND 40 million to 80 million shall be imposed for enterprises fail to promulgate and complying with internal regulations on money laundering prevention; and failure in implementation of internal audit on money laundering prevention;
- A fine of from VND 50 million to VND 100 million shall be imposed for failure in promulgate regulations on of risk management procedures for transactions related to new technologies. In addition, failure on possessing a risk management system to identify foreign clients being individuals with political influence also be fined up to VND 100 million.