* AT ISSUE: Insurers must comply with the Act, which was passed last October. Allegations have been made that at least $1 billion annually is being laundered through insurance contracts, such as annuities.* CURRENT STATE: Life insurers are the most vulnerable and have begun making good-faith efforts. But property/casualty and health insurers, who are also at risk of becoming unknowing partners to terrorist money laundering, have not taken meaningful action.
* THE TASK: Carriers can start to comply with the Act by flagging possible "suspicious" financial activities, such as a policy beneficiary change, and cross-referencing with law enforcement databases. But insurers will have a hard time identifying usage patterns and money-laundering trends, since they have not created an enterprisewide view of their customers.
