AML INFORMATION
What is Money laundering and Terrorist financing?
Money laundering means actions aimed at legalising or concealing the origin of proceeds from crime or of other criminal assets. Terrorist financing means the direct or indirect collection or release of financial resources or other assets with a view to using them or knowing that they will be wholly or partly used for the purpose of carrying out one or more terrorist acts or that they will be transferred to a terrorist group or to an individual terrorist.
Why is Inpro Insurance Brokers OÜ (hereinafter Inpro Insurance) obliged to comply with the requirements for the prevention of money laundering and terrorist financing?
Inpro Insurance, as an insurance brokerage company intermediating life and non-life insurance policies, is a financial institution (obliged entity) responsible for the prevention of money laundering and terrorist financing (ML/TF).
The company must ensure that its infrastructure, products and/or services are not used by people who have illegal goals, thereby developing the trust of existing and future client.
What is KYC?
Know Your Customer (KYC) are the principles designed to protect financial institutions and the economy against ML/TF related risks. KYC consists of few steps to be done by the obliged entity: for example, identify the client make sure that the source of funds is legitimate etc.
Legislation on the prevention of money laundering and terrorist financing imposes very strict requirements on the processes and control measures to be implemented in a company, and sanctions are imposed not only for cases of actual money laundering, but also for non-compliance with these measures.
Inpro Insurance has a legal obligation to perform KYC by collecting certain information about clients.
What is client’s identification?
According to the regulations, Inpro Insurance as an obliged entity must identify the client prior to establishing a business relationship. To identify a natural person, we apply methods of identification required by law, for example, request to present a valid personal identification document.
When identifying a legal person, Inpro Insurance requests current information from the company register which confirms data on the customer establishment, address, type of activity and indicates natural persons who have the right to represent the customer in business relationships with Inpro Insurance.
Why do you ask my personal information?
To comply with the legislation and to meet KYC requirements, Inpro Insurance must obtain certain information about the customers and to update it during the business relationship. For this purpose, Inpro Insurance may ask for personal information as for starting, as for continuation of the business relationship.
The information about our clients is kept confidential in accordance with insurance secrecy.
Why different financial institutions ask different types of information?
In order to determine the background of their clients, financial institutions may use different approaches and sources of information. Inpro Insurance is doing their best to be a reliable partner and collect the essential information which is needed to comply with the Law and regulations.
Who is PEP (Politically Exposed person)?
Politically exposed persons (PEP) are natural persons who currently hold or previously held a prominent public function in any states and/or international institutions.
Information should also be received on the clients related to the PEP and these are:
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Immediate family members of PEP (spouse, person with whom partnership is registered, parents, siblings, children and children’s spouses, children’s partners),
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Close associates to PEP (persons with whom the person runs a joint business or maintains a different work or business relationship).
Here you may find the list of PEP positions: https://www.riigiteataja.ee/akt/124092020004?leiaKehtiv
Who is an ultimate Beneficial Owner (UBO)?
Ultimate Beneficial Owner (UBO) is a natural person:
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Who, via ownership or other type of control, has the final dominant influence over a natural or legal person, or
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In whose interests, for the benefit of whom or in whose name a transaction or operation is made.
Traditionally, the person who owns, in the form of direct or indirect shareholding, more than 25% of the capital shares or voting stock of the legal person is considered the UBO.