By IANS,
Chennai : India’s insurance regulator has warned insurers against violating its anti-money laundering (AML) guidelines, and said it would take “serious actions” if such cases were found.
In a notice to the insurers, the Insurance Regulatory and Development Authority (IRDA) expressed concern that some insurers were splitting insurance policies and accepting premium in cash even if the amount is more than Rs.50,000.
As per IRDA’s guidelines, remittances of premium by cash should not exceed Rs.50,000 and the insurers were free to stipulate a lower threshold level.
“The authority will be constrained to take serious action against the insurers where the violations of AML framework are permitted with their tacit approval,” IRDA said.
Premium above Rs.50,000 has to be paid by way of a cheque, demand draft, credit card or any other banking channels so that the source of funds could be traced.