Civil Penalties - Crown Global Life Insurance and Crown Global Life Insurance (Bermuda) Ltd (2020-12-31)

Summary

This is a Bermuda Monetary Authority enforcement notice announcing civil penalties totalling $400,000 against Crown Global Life Insurance Ltd. and Crown Global Life Insurance (Bermuda) Ltd. for breaches of Bermuda's anti-money laundering and anti-terrorist financing regulations. The Authority found no evidence of actual money laundering or terrorist financing, but identified multiple compliance failures uncovered during a November 2018 on-site review.

• Legal basis: Penalties imposed under section 20 of the Proceeds of Crime (Anti-Money Laundering & Terrorist Financing Supervision & Enforcement) Act 2008.
• Breaches identified: Failures in customer due diligence, ongoing monitoring of business relationships, timing of verification, enhanced due diligence, outsourcing, record-keeping, AML/ATF policies and procedures, independent audit functions, and the compliance officer function.
• Remediation history: The Authority required the Companies to remediate the failings by 31 July 2019; remediation was not completed to the Authority's satisfaction within that timeframe, leading to the penalties.
• Current status: The notice states the Companies are now in compliance with the Proceeds of Crime (Anti-Money Laundering & Anti-Terrorist Financing) Regulations 2008.

This is a historical enforcement notice concerning two specific insurers and does not itself impose new ongoing obligations on other regulated entities, though it illustrates the AML/ATF compliance areas the BMA actively supervises and enforces against insurers.

Applies to

insurers, long-term insurers

Deadlines

• 31 July 2019: Deadline set by the Authority for Crown Global Life Insurance Ltd. and Crown Global Life Insurance (Bermuda) Ltd. to remediate the identified AML/ATF compliance failings; remediation was not completed satisfactorily by this date.