Liberia: Financial Intelligence Unit Fines Insurance Companies L$21M for Non-Compliance, Obstruction

Monrovia – The Financial Intelligence Unit (FIU) of Liberia has levied a L$21 million (L$1.5 million each) fine against all insurance companies operating in Liberia for their alleged refusal and failure to comply with its regulations.

The companies include the Accident and General Life Insurance Company, American Underwriter Group, Accidental and Casualty Insurance Company, Activia Insurance Company, Blue Cross Insurance Company, Insurance Company of Africa, Mutual Benefit Assurance Company Medicare Insurance Company Omega Group of Company Limited, Palm Insurance Company, SAAR Insurance Company SUNU Insurance Company, Secure Risk Insurance Company and Sky Insurance Company.

Announcing the punishment, the FIU Director General, Edwin W. Harris, Jr. said all of the insurance companies operating in Liberia have refused and failed to file both Currency Transaction and Suspicious Transaction reports in violation of Section 67.4.1, 67.5 of the 2012 Financial Intelligence Unit Act and both Section 2.4 of the regulations on Currency and Suspicious Transaction reports and lawfully exempted themselves.

Mr. Harris said: “The unlawful exemption taken by these insurance companies and their refusal to file impedes one of the core functions of the FIU to collect, analyze and disseminate useful information to law enforcement and competent authorities pursuant to section 67.3(a).

The inaction of or willful exemption taken by these insurance companies amounted to obstruction of lawful investigation which in itself is criminal under the laws of Liberia.”

All fines are to be paid in the FIU Transitory Account held at the Central Bank of Liberia within 72 hours, the FIU Director General mandated. Failure to do so, he said the companies might be cut off from the financial system and designated as high-risk institutions to money laundering based on their non-compliance.

He further stated that the FIU will take additional actions to include the recommendations for suspension of operating license and publicly designating the entity as a high-risk entity due to non-compliance to Anti-Money Laundering, Terrorist Financing and the Proliferation of the Weapon of Mass Destruction regulations.

Prosecution of Kolane Investment Limited

The FIU has also welcomed the indictment of Kolane Investment Limited Liability Liberia. The FIU designated the company as a high-risk money laundering shell company. Mr. Harris noted that it is the anticipated goal of the FIU to see prosecutors push for speedy trial in bringing to a legal conclusion in the case. At the same time, the FIU called on the Government to make funding available to prosecutors as they pursue the case to its legal conclusion.  “The FIU made a renewed call on the Liberia Business Registry to make null and void the business certificate and registration of Korlane Investment Limited Liability that was established as a front company.”

Mutual Evaluation

Speaking further, the FIU boss announced that Liberia will be evaluated on Technical Compliance and Effective Compliance by the Inter-Government Action Group Against Money Laundering in West Africa (GIABA), a specialized agency of the ECOWAS.

According to him, Liberia’s preparation is on a slow pace and called on all stakeholders to double their collective efforts to ensure Liberia obtain a good score, adding the contrary will not be in the best interest of the country’s image and investment climate. “It is against this background we call on national Government to make the requisite funding available to enable the Liberia working Group on Mutual Evaluation to carry out its activities without hindrance due to the lack of funding,” he said.

In addressing the risks identified in the National Risk Assessment on Money Laundering and Terrorist Financing in Liberia, he revealed that the FIU and all stakeholders have completed an Anti-Money Laundering Strategy and Action Plan to address all of the risks over the next five years. Upon the approval of the Strategy and Action Plan by the Inter-Ministerial Committee, the FIU will officially launch the Strategy and Plan in Monrovia early March 2022, he announced.

The FIU, through its boss also called on the Liberian Senate to consider the Anti – Money Laundering Law and the Financial Intelligence Agency Act as both instruments will play a key role in the mutual evaluations. However, he called on the Senate to look at the original instruments as submitted by the President as concurring with the House’s version will not serve the purpose for mutual evaluation and it will need to go for amendment.  The FIU wants other bills such as the amendments to the penal code criminalizing market manipulation, inside trading pass, as they are all objects for the mutual evaluation upon which Liberia could suffer a setback if not pass on time.