Life Insurance
Streamline client onboarding, risk screening, and payout verification—all while meeting your mandatory FINTRAC obligations. Compliance under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) is not optional—it is a legal requirement for life insurance companies, brokers and agents operating in Canada.
Avoid fines, protect policyholder trust, and stay audit-ready with solutions built for the insurance industry’s compliance challenges.
Who Is It For?
This solution is designed to help insurance professionals navigate and meet FINTRAC obligations, reducing manual overhead and regulatory risk.
Industry Overview
Insurance companies and intermediaries in Canada are classified as reporting entities under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). They are required to conduct due diligence on clients, monitor transactions, and report suspicious or large cash activity.
Despite not handling daily transactions like banks, insurers manage large policy premiums and payouts—making them a potential vehicle for illicit financial activity. Regulatory expectations are increasing, and firms must be ready with robust AML compliance.
New Compliance Landscape: Bill C-2
Canada’s Bill C-2, currently in Parliament, introduces sweeping changes to anti-money laundering laws. It proposes:
Stricter penalties:
Individuals could face fines of up to $4 million per violation, while entities such as insurance companies or brokerages may face up to $20 million.
Cumulative penalties:
For multiple infractions, fines may rise to the greater of $4M or 3% of global income (individuals), and $20M or 3% of global annual revenue (entities).
Mandatory FINTRAC enrolment:
All regulated businesses, including life insurance companies, must enrol with FINTRAC unless specifically exempted. This includes submitting detailed applications, renewing periodically, and updating business information as needed.
These changes make proactive compliance more important than ever. Our platform helps insurers meet evolving regulations while reducing operational and reputational risk.
Common Challenges
Our Solutions
Identifying beneficial owners and third parties
Ensure collection of beneficiary and third-party details as required.
Comply with rules for group or corporate beneficiaries.
Trigger KYC/ID steps before any disbursement or settlement.
Capture government-issued ID and attach to client profiles.
Tailored workflows that reflect exemptions and obligations specific to the industry.
Trigger alerts only when regulatory thresholds are met.
Comply with five-year retention without manual tracking.
Keep timestamped records of all compliance actions.
Spot red flags like unusual policy switches or payout structures.
Draft reports based on pre-filled data and internal flags.
Services Relevant to This Industry
Client Verification for Insurance Products
Ensure proper ID verification before contract signing or fund disbursement.
Third-Party Identification Workflows
Determine and document if policy premiums or claims involve third-party payers.
Beneficial Ownership Disclosures
Gather and assess control information for non-personal policies.
STR and LCTR Detection & Reporting
Identify reportable activity and streamline FINTRAC filing.
Policy-Based Risk Scoring
Assign risk levels to clients based on product type, premium amount, and other flags.
Regulatory Document Retention
Store KYC files, policy records, and declarations securely for 5+ years.
Real-World Use Cases
Use Case 1: Life insurance broker onboarding a high-net-worth client
Collects ID, verifies source of funds, and triggers beneficial owner declarations.
Use Case 2: Suspicious claim payout with early policy cancellation
System flags the behavior pattern, STR workflow launched and reviewed.
Use Case 3: Group policyholder pays with third-party corporate cheque
Triggers third-party review form with full details captured.
Frequently Asked Questions
Do we need to verify identity for every policyholder?
Only under specific circumstances, such as large lump-sum payments or suspicious activity. Our system guides you through the rules.
How are group or corporate beneficiaries handled?
We provide tools to gather beneficial ownership and control declarations as required by FINTRAC.
Is third-party determination mandatory in insurance?
Yes. If someone other than the policyholder is funding the policy or receiving payouts, you must identify them.
What triggers a suspicious transaction report (STR) in insurance?
Early cancellations, structured payouts, mismatched beneficiary data, or unusual funding patterns may trigger STR workflows.
How long should we retain client and transaction documents?
Typically five years after the policy ends or the transaction is completed.
Getting Started
Ensure your insurance business is fully compliant and audit-ready—without the manual work. Our platform is tailored to your sector, helping you confidently meet all FINTRAC obligations from day one.
Fill out the short contact form below or choose another convenient way to reach us.
Our team is here to listen, answer your questions, and help you get compliant — fast.
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