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#25062 - 07/24/02 01:29 AM Patriot Act and Insurance Agencies
Bear Collector, CRCM Offline
Diamond Poster
Bear Collector, CRCM
Joined: Nov 2000
Posts: 1,830
District of Columbia
Insurance companies fall under the expanded definition of "financial institution". Does anyone know if an "Insurance Agency" would also fall under that definition? We are a bank that owns an insurance agency. They do not underwrite insurance; they place business with insurance companies. The question has been raised as to whether they fall under the Patriot Act and the expanded BSA requirements. HELP. Please!
Thanks
Leslie
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General Discussion
#25063 - 07/24/02 02:32 PM Re: Patriot Act and Insurance Agencies
redsfan Offline
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redsfan
Joined: Dec 2000
Posts: 3,455
The Pennant Race
I believe they do, if for no other reason than they are your subsidiary.
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#25064 - 07/24/02 02:59 PM Re: Patriot Act and Insurance Agencies
GenerousLife Offline
Diamond Poster
Joined: Feb 2002
Posts: 1,466
USA
We have the same situation and I agree that they are included in the definition.
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#25065 - 07/24/02 03:24 PM Re: Patriot Act and Insurance Agencies
Maria Offline
Platinum Poster
Joined: Apr 2001
Posts: 502
Sylacauga, Al, United States
I agree also. Any subsidiary would be applicable, including an insurance company and a finance company. We have both. Lucky?

Opinions are mine not my employer

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#25066 - 04/04/03 05:33 PM Re: Patriot Act and Insurance Agencies
OnTheEdge Offline
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Joined: Apr 2002
Posts: 1,677
SmallTown, USA
So are you applying same standards to subs?
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#25067 - 04/04/03 05:37 PM Re: Patriot Act and Insurance Agencies
OnTheEdge Offline
Diamond Poster
Joined: Apr 2002
Posts: 1,677
SmallTown, USA
I also have the interim finaly rule effecte April 24, 2002 from Treasury that states, "This rule temporarily exempts, pending futher analysis and review by Treasury and FinCEN, all other financial institutions ( as defined by BSA) from the requirement in section 352 that they establish anti-money laundering programs. " So far I haven't found anything more current.
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#25068 - 04/04/03 05:59 PM Re: Patriot Act and Insurance Agencies
RebekahL CRCM Offline
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RebekahL CRCM
Joined: Feb 2003
Posts: 874
Big Sky Country
Omigosh - I can't belive it - I know the answer to this one!! (This is a big day for me - my posts up to this time have all been questions! )

I had this exact same question. Here's what I documented:

Request for compliance Interpretation

Situation/Issue/Question (3/10/03): Question #28 of FinCEN’s frequently asked questions (regarding the 314(a) information requests process) says that affiliated financial institutions may share 314(a) information requests for purposes of the Bank Secrecy Act. Does this apply to XXXXXX Bank’s affiliate relationship with XXXXXX Insurance?

Background info leading to this question:

- 31 CFR 103.100(b)(2)(iv)(3), which is referenced in Q&A #28, defines a “financial institution” as including (m) an insurance company.

- XXXXX Insurance is an insurance agency, and does not sell insurance products of its own. It only provides products made available by other insurance companies (ex: Safeco) in an agency setting.

Does this definition extend to an insurance agency, thereby making the above applicable to XXXXX Bank? That is, should we also search the records of XXXXXX Insurance in order to be compliant with the US Patriot Act section 314(a) requests?

Answer (3/10/03): According to Jeffrey Pratt of FinCEN’s 314(a) hotline (1-800-949-2732), the insurance agency is not a “financial institution” as defined in the regulation, although he acknowledged that it is a gray area. Nonetheless, he recommended we NOT share the confidential 314(a) requests with XXXXXX Insurance and NOT have them search their records for any matches.

There's the answer I got, anyway. Hope it helps!
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