VICTORIA E. FIMEA SENIOR COUNSEL LITIGATION firstname.lastname@example.org
CARL B. WILKERSON CHIEF COUNSEL SECURITIES & LITIGATION email@example.com
December 16, 2002
Financial Crimes Enforcement Network (FinCEN) U.S. Department of the Treasury Section 352 Insurance Company Regulations P.O. Box 39 Vienna, Virginia 22183 firstname.lastname@example.org
Section 352 Insurance Company Regulations
Amendment to the Bank Secrecy Act Regulations – Requirement That Insurance
Companies Report Suspicious Transactions, Notice of Proposed Rulemaking (“Proposed Rule”)
We write on behalf of the American Council of Life Insurers (“ACLI”), the largest trade association in the United States representing the life insurance industry. Our members consist of three hundred ninety-nine (399) legal reserve life insurance companies operating in the United States. Of these companies, seven (7) are domiciled in Canada. These 399 companies account for 76 percent of the life insurance premiums, 75 percent of annuity considerations, 46 percent of disability premiums, and 65 percent of long-term care premiums in the United States among legal reserve life insurance companies. ACLI member company assets account for 75 percent of legal reserve life company total assets.
The ACLI submitted an extensive comment letter dated November 25, 2002 in response to the proposed rulemaking under section 352 of the USA PATRIOT Act (requirement for anti- money laundering programs). Rather than repeat the analysis from that letter in this letter on the Proposed Rule, we wish to incorporate that text by reference in this letter. We appreciate Treasury’s outreach to our industry in developing the Proposed Rule, for it gives us valuable guidance on regulatory expectations. Our comments on the Proposed Rule are in six areas: exemption for four areas in the definition of insurance company, obligations on distributors concerning suspicious activity reporting, a time period for the $5,000.00 aggregate reporting trigger point, an SAR form for insurance companies, request for clarification for Broker-Dealers already subject to suspicious activity reporting, and, a requested revision to the Supplementary Information section of the Proposed Rule.