Anti-money laundering (AML)
Money laundering is the term that describes the various methods used by criminals
to conceal the true origin and ownership of the money that they make from crime.
If the money laundering process is successful it allows the criminal to maintain
control of these proceeds and ultimately, provide a legitimate cover for their source
It is essential to the fight against crime that criminals be prevented, wherever
possible, from legitimising the proceeds of their criminal activities by laundering
money through financial institutions such as Clerical Medical.
Laundering the proceeds of criminal activity through the financial system is vital
to the success of these criminal operations. The increased integration of the world's
financial systems and the removal of barriers to the free movement of capital have
enhanced the ease with which criminal money can be laundered. Once illegitimate
funds have entered the financial system they are harder to trace and confiscate.
In addition, recent world events have increased awareness of terrorist activities
and the need for increased vigilance when dealing with financial transactions.
The Isle of Man Criminal Justice (Money Laundering) Code 2008 requires regulated
companies to implement anti-money laundering and counter terrorist financing policies,
procedures, and practices.
Scottish Widows Limited is regulated by the Isle of Man Government Insurance
and Pensions Authority (IPA). The IPA sets out the regulatory requirements for Isle
of Man authorised insurers within the Insurance (Anti-Money Laundering) Regulations
2008 and the accompanying Guidance Notes on Anti-Money Laundering and Preventing
of Terrorist Financing - for Insurers (Long Term Business).
The overriding requirement behind anti-money laundering legislation and regulation
is 'Know Your Customer'. This requires that the identity of the applicant must be
established prior to entering a business relationship. This applies equally wherever
the applicant may be based and whether the applicant is personal, corporate, trust,
nominee or any other category. Verification is required for all new business relationships
and transactions. Where a firm is unable to verify the identity of an applicant,
by law it is unable to proceed any further with the application.
Please be assured that these requirements in no way call into question your integrity.
We must respond to regulatory requirements in a responsible manner however, to ensure
as far as possible that criminals are hindered in their attempts to exploit the
financial services industry.
We are keen to stress that it is in all our interests that the Isle of Man remains
synonymous with financial excellence and best business practice, and we would like
to take this opportunity to thank you for your co-operation in this matter.