Open letter to Skandia Life marketing manager Lynda Cox
I write with regard to your statements (Money Marketing November 8) in connection with the money laundering regulations for term insurance.
I put it to you that money laundering for term insurance is nothing short of ridiculous.
Occasionally, term insurance is used in connection with a large property purchase but if a loan is being made, then the lender will have taken up references and proof of identity will have had to be given.
The solicitor also asks for proof of identity when undertaking any legal property purchase transactions.
In addition, one assumes that if the property purchase is being used for money laundering purposes then there will be no need to borrow money as the whole purpose would be to invest funds and thus no need for term insurance.
I find your comments unconstructive and ill-thought out. The FSA and the Government are really overburdening the industry with unprecedented levels of administrative and compliance procedures without the encouragement of life insurance companies adding support to their campaign.
I am sure we would all agree that money laundering, drug trafficking, etc, are deplorable but these regulations do not stop individuals, who operate with false passports, false identity cards and the like, from laundering their “dirty” money.
Messer & Matthews, Guildford