New Delhi, Nov 1 (IANS) Insurance Regulatory Development Authority (IRDA) has cautioned insurance companies against policy holders whose identity matches that of those on the United Nations’ list of terrorists or organisations engaged in funding terror attacks.
“Insurance companies will immediately, and in any case within 24 hours from the time of identifying a match, inform full particulars of the insurance policies held by such a customer on their books to the ministry of home affairs (MHA),” said IRDA, the sectoral regulator, in a circular to insurance firms.

Insurers will also have to file suspicious transaction reports with the Financial Intelligence Unit-India, the central agency responsible for tracking information relating to suspect financial transactions.

The UN list has names of terrorists and outfits accused of funding activities of terror outfits.

“In case, the match of any of the customers with the particulars of designated individuals or entities is beyond doubt, insurance companies would prevent designated individuals or entities from conducting any transactions and intimate the MHA,” the regulator further said.

“Also on receipt of the particulars of suspected designated individual and entities MHA would investigate so as to ensure that the individuals or entities identified by the insurance companies.”

The apex bank, Reserve Bank of India, and the market regulator, Security and Exchange Board of India, have issued similar guidelines to stock exchanges and banks to prevent terror funding and money laundering.