HAMILTON, BERMUDA – The Bermuda Monetary Authority (Authority or BMA) has imposed civil penalties totalling $400,000 on Crown Global Life Insurance Ltd. and Crown Global Life Insurance (Bermuda) Ltd. (the Companies) pursuant to the provisions of section 20 of the Proceeds of Crime (Anti-Money Laundering & Terrorist Financing Supervision & Enforcement) Act 2008.
HAMILTON, BERMUDA – The Bermuda Monetary Authority (Authority or BMA) has imposed civil penalties totalling $400,000 on Crown Global Life Insurance Ltd. and Crown Global Life Insurance (Bermuda) Ltd. (the Companies) pursuant to the provisions of section 20 of the Proceeds of Crime (Anti-Money Laundering & Terrorist Financing Supervision & Enforcement) Act 2008. The Authority found no evidence that the Companies were involved or complicit in any money laundering or terrorist financing activities. The Companies are now in compliance with the Proceeds of Crime (Anti-Money Laundering & Anti-Terrorist Financing) Regulations 2008 (Regulations).
The civil penalties have been imposed for the Companies’ failure to adequately comply with the following requirements of the Regulations:
i) The application of customer due diligence measures
ii) Ongoing monitoring of business relationships
iii) The timing of verification
iv) The application of enhanced due diligence
v) Outsourcing
vi) Record-keeping
vii) Anti-Money Laundering/Anti-Terrorist Financing (AML/ATF) Policies and Procedures
viii) Independent audit functions
ix) Compliance officer
The breaches outlined above came to light during an on-site review of the Companies’ activities conducted by the AML/ATF unit of the Authority in November 2018. The Authority required the Companies to remediate these failings by 31 July 2019. The remediation was not completed to the satisfaction of the Authority within the timeframe. The Authority views these breaches as serious because of their extent and duration, and because they demonstrated a weakness of the Companies’ internal AML/ATF controls.
