AML/CFTR 4.3.10 CDD for beneficiaries of life insurance policies — general

(1) A financial institution must conduct the either of the following measures on each beneficiary of a life insurance policy or other investment-related insurance policy as soon as the beneficiary is identified or designated:
(a) for an identified beneficiary (whether a natural or legal person or a legal arrangement) — recording the beneficiary's name;
(b) for a beneficiary designated by characteristics or class (for example, spouse or children at the time that the insured event occurs) or by some other means (for example, under a will)) — obtaining enough information about the beneficiary to satisfy the financial institution that it will be able to establish the identity of the beneficiary at the time of the payout.
(2) The institution must verify the identity of each beneficiary at the time of the payout.
(3) In deciding whether enhanced CDD is applicable, a financial institution must consider the beneficiary of a life insurance policy as a risk factor. If the financial institution decides that a beneficiary who is a legal person or a legal arrangement presents a higher risk, the enhanced CDD should include reasonable measures to identify, and verify the identity of, the beneficiary's beneficial owner at the time of payout.
(4) If a financial institution is unable to comply with this rule, it must consider making a suspicious transaction report to the FIU.
Derived by QFCRA RM/2019-8 (as from 1st February 2020)