Art. 47 Specifications for the life and other investment-related insurance sector | Anti-money laundering regulation (AMLR) | AML

This article extends the customer due diligence framework to cover beneficiaries of life and other investment-related insurance policies.

Building on the general customer due diligence obligations found elsewhere in the regulation, Article 47 establishes that obliged entities must take specific steps regarding beneficiaries — not just the customer and beneficial owner — as soon as those beneficiaries are identified or designated.

The article also addresses the timing of full identity verification and what happens when a policy is assigned to a third party.

Important points:

Apply customer due diligence measures to insurance policy beneficiaries as soon as they are identified or designated — recording names for specifically named beneficiaries, and gathering sufficient information for those designated by class or characteristics.
Full verification of a beneficiary's identity (and that of their beneficial owner, where relevant) takes place at the time of payout, not at the point of designation.
Where a life or investment-related insurance policy is assigned to a third party, identify the beneficial owner of the receiving party at the time of that assignment.

For life or other investment-related insurance business, in addition to the customer due diligence measures required for the customer and the beneficial owner, obliged entities shall apply the following customer due diligence measures on the beneficiaries of life insurance and other investment-related insurance policies, as soon as the beneficiaries are identified or designated:
1. in the case of beneficiaries that are identified as specifically named persons or legal arrangements, recording the name of the person or arrangement;
2. in the case of beneficiaries that are designated by characteristics or by class or by other means, obtaining sufficient information concerning those beneficiaries so that it will be able to establish the identity of the beneficiary at the time of the payout.
For the purposes of the first subparagraph, the verification of the identity of the beneficiaries and, where relevant, their beneficial owners shall take place at the time of the payout. In the case of assignment, in whole or in part, of the life or other investment-related insurance to a third party, obliged entities aware of the assignment shall identify the beneficial owner at the time of the assignment to the natural or legal person or legal arrangement receiving for its own benefit the value of the policy assigned.