IRDA said that it has seen various reports appearing in the media on the alleged violations of the KYC and AML guidelines by some insurance companies.
IRDA has asked insurance companies to submit a report clarifying their roles in the alleged violation of Know Your Customer (KYC) and Anti Money Laundering (AML).
In a press release, IRDA said that it has come across various reports appearing in the media on the alleged violations of KYC and AML guidelines some insurance companies. “The matter is under examination and appropriate action will be taken at the earliest”, said the press release.
On Monday, the news website cobrapost.com had reported the alleged involvement of public sector banks and insurance companies including LIC, Reliance Life, Tata AIA and Birla Sunlife in violation of KYC and AML norms. The sting operation of cobrapost.com showed that the employees of some banks and insurance companies were guiding the representatives of news agency, who are posing as customers, to route their black money into financial system with the help of insurance, multiple accounts opening, etc.
Meanwhile, the Union Finance Ministry has also asked the PSBs and LIC to initiate immediate action against those exposed by the news agency. In a press release, Secretary of Department of Financial Services Rajiv Takru has asked the Chairman cum Managing Directors of 27 PSB banks and LIC for a detailed report on utmost priority with the name of the employees/designation involved in it. The ministry has also sought report on action taken against such employees.
Email queries sent to some insurance firms remained unanswered till the time of writing.