BCP MAS Regulations & Compliance 2

Question 1

What does Anti-Money Laundering (AML) compliance require of Singapore insurers?

Accepted Answer

Customer due diligence, transaction monitoring, and reporting suspicious transactions

Answer

AML compliance requires insurers to conduct customer due diligence (know your customer), monitor transactions for suspicious activity, and report suspicious transactions to the Suspicious Transaction Reporting Office (STRO).

Question 2

What is the significance of the 'Financial Action Task Force' (FATF) recommendations for Singapore insurers?

Accepted Answer

FATF standards form the basis of Singapore's AML/CFT framework that insurers must comply with

Answer

FATF recommendations form the international standard for anti-money laundering and counter-terrorism financing (AML/CFT). Singapore's MAS framework for insurers is largely based on FATF standards.

Question 3

Under MAS Notice 124, what is required of an insurer's board of directors regarding risk management?

Accepted Answer

Approving the risk management framework and ensuring adequate controls exist

Answer

MAS Notice 124 requires the board to approve the risk management framework, set risk appetite, and ensure that adequate systems and controls exist to identify, measure, monitor, and manage risks.

Question 4

What must an insurer disclose to policyholders under MAS Notice 318 (for general insurance)?

Accepted Answer

Key features, exclusions, claims procedures, and cooling-off rights

Answer

MAS Notice 318 requires general insurers to disclose key product features, important exclusions, claims procedures, and where applicable, cooling-off rights to ensure policyholders can make informed decisions.

Question 5

What is Singapore's approach to regulating InsurTech (insurance technology) companies?

Accepted Answer

Using a regulatory sandbox (MAS FinTech Regulatory Sandbox) allowing controlled innovation

Answer

MAS operates a FinTech Regulatory Sandbox allowing InsurTech companies to test innovative products and services within a controlled environment with relaxed regulatory requirements, subject to conditions.

BCP Insurance Practice Test

BCP Insurance Practice Test

BCP MAS Regulations & Compliance 2