The Council of Europe Office in cooperation with the Central Bank of Kosovo (CBK) organised a two-day workshop "Understanding money laundering and terrorist financing (AML/CFT) risks, risk factors and the supervisory approach for the insurance sector".

The workshop was held as part of Council of Europe’s support to the Central Bank in developing an AML/CFT supervisory approach for the insurance sector, bringing together representatives of the Central Bank, insurance companies and the Financial Intelligence Unit. Its aim was to build a shared understanding of the insurance sector from AML/CFT perspective, to discuss the risks it faces and to agree on the risk factors that will enable a more adequate ML/FT supervision of the sector.

Participants initially had the opportunity to hear from the Council of Europe expert on key AML/CFT obligations and principles applicable to the insurance sector as well as relevant international money laundering and terrorist financing typologies affecting the sector. They also benefitted from open discussions on the risks, vulnerabilities and potential consequences within the insurance sector, including ways to identify the most material risk factors related to customers, products and services, geography, distribution channels, intermediaries and transactions.

The second day focused on the AML/CFT supervisory framework for the insurance sector, from institutional risk assessment and supervisory planning to off-site and on-site monitoring. Participants discussed the structure of the quantitative and qualitative risk assessment forms used to determine inherent and residual risk, the planning of risk-based inspections, and the proposed roadmap for implementing the risk-based supervision model.

Following the workshop and input provided by participants, the action will develop a methodology with necessary tools and practical implementation which is expected to be adopted by the Central Bank as part of their risk-based supervisory work.

The activity was organised within the framework of the Action on Countering Corruption and Economic Crime funded and implemented by the Council of Europe.

*All references to Kosovo, whether to the territory, institutions or population shall be understood in full compliance with the United Nations Security Council Resolution 1244 and without prejudice to the status of Kosovo.