European reinsurers are the latest to come under scrutiny from the New York financial regulator. Intelligent Insurer finds out how the market is reacting to increasing pressure from the US and asks whether the sharp focus on these reinsurers has caused tensions.
On July 24, 2013, a host of European reinsurers writing business in New York received a letter from the New York financial regulator, seeking information concerning their compliance with the Iran Freedom and Counter-Proliferation Act 2012 (IFCPA).
Less than a month after the act came into play, Benjamin Lawsky, the superintendent of the New York Department of Financial Services, contacted the reinsurers in the latest part of his ongoing investigation which aims to “seek information about reinsurers’ plans to implement compliance and due diligence programmes designed to avoid any potential violations of the IFCPA”.
The high profile move by the regulator illustrated just how the issue of sanctions, a topic once confined strictly to re/insurers’ compliance and in-house counsel departments, is increasingly making headlines and thrusting the business practices and of firms into the spotlight. This also has the potential to harm the reputation of companies.
compliance, IFCPA, OFAC, New York Department of Financial Services