SUSEP Public Consultation No. 05/2020: preventing and combating financial crimes in operations involving politically exposed people

The Superintendence of Private Insurance (SUSEP) opened Public Consultation No. 05/2020, putting forward a draft Circular that repeals SUSEP Circular No. 445/2012 and introduce new provisions on the subject matter.

The text brings certain innovations that include:

• Express inclusion of national political party presidents and treasurers in the list of Politically Exposed People (PPEs);

• Inclusion of family members, representatives and close collaborators (those who maintain a strict personal link to PPEs) into the scope of the Company’s control and inspection duties;

• Creation of a “Money Laundering and Terrorism Financing Prevention Policy” that include its respective governance measures and the Company’s obligation to deliver an annual Effectiveness Report containing information on the results of its internal risk assessments;

• Expansion of the duties to control and inspect PPEs, including monitoring of operations, in addition to the obligation of supervised companies to know their employees, partners and outsourced service providers;

• Duty of direct notification to COAF (Financial Activities Control Council) in the case that any evidence of an operation related to financial crimes or with an indication of the financing of terrorism is detected;

• Provision for admitted reinsurers and brokers whose annual gross revenue is less than BRL 12,000,000.00 (twelve million reais) in the previous year to have controls compatible with the size and volume of their operations;

• Authorization for companies belonging to one single economic group to have a unified database;

• Obligation to provide an annual report which details the effectiveness of the internal risk assessment adopted by the company, as well as other mandatory information;

• Establishing of a five-year grace period for keeping data and information in registry records following the conclusion of the contractual relationship;

• Obligation to comply, without prior notification, with United Nations Security Council resolutions or designations that determine the freezing of assets of any values, owned, directly or indirectly, by natural persons or legal entities.

The full draft Circular can be accessed at this link. Interested parties may send comments or suggestions by an electronic message addressed to corac.rj@susep.gov.br, according to the specific standardized table duly completed, by May 5, 2020.

Demarest’s Insurance and Reinsurance team is closely monitoring the development of this public consultation through to the publication of the final version, and makes itself entirely available to provide any clarifications on the subject.