COMPLIANCE & REGULATION
The Britannia Steam Ship Insurance Association Limited is registered in the United Kingdom (Company No. 00010340). It is authorised by the Prudential Regulatory Authority (“PRA”) and is regulated by the PRA and the Financial Conduct Authority (“FCA”), reference number 202047.
You can check this on the Financial Services Register or by telephoning +44 (0) 845 606 1234.
The key regulatory requirements affecting Members of the Britannia Steam Ship Insurance Association include Whistleblowing, Sanctions, Bribery and Corruption, Anti-Money Laundering, Slavery and Human Trafficking. Let’s deal with these one by one.
‘Whistleblower’ is a term that’s been coined to describe a person who reveals wrongdoing within the organisation for which he or she works or works with. As a mutual insurer, we are obviously committed to conducting business with honesty, integrity and transparency. However, even the best-run firm can inadvertently suffer wrongdoing from time to time. So, if you work for us, or work with us, we encourage you to raise any concerns you may have about any aspect of our operations at the earliest possible moment.
RAISING YOUR CONCERNS
If something rings an alarm bell – either within our Association, on the part of our Managers, or that of a third party, such as a correspondent – we appreciate that you may find it difficult to discuss this with your normal business contact or line manager. In which case, we have two channels in place through which you can voice your concerns, both in total confidence. Expolink, which is an independent hotline, operates one. Call 0800 374199 to speak to them. The other, we operate ourselves using Dan Wilkinson, our Chief Risk Officer. Call +44 (0) 207 415 2357 to speak to him; or email him at email@example.com
Economic, trade or financial sanctions are imposed to exert pressure on individuals or political regimes, usually to advance foreign policy objectives. Sanctions include financial or trading restrictions, such as freezing the assets of, and placing travel restrictions on, nominated individuals; bans on financing of state-owned enterprises; prohibitions on the supply of technical, financial and other assistance; and outright prohibitions on trade and related insurance to facilitate that trade. P&I insurance for ship owners and operators is an example of this type of sanction.
The requirements to comply with trade and financial sanctions are usually imposed on any individual or entity located within the borders or subject to the laws of the country, or whichever international body is enforcing the sanction. In the case of insurance companies, sanctions will apply by virtue of (a) the domicile of the party subject to sanctions – in the case of our Association and our Managers, because we are domiciled in the UK – the Association and its Managers are subject to UK sanctions; (b) dealing with certain currencies, for example. US dollar transactions will be subject to US imposed sanctions; and (c) related insurance or reinsurance arrangements where those insurers/reinsurers are themselves subject to sanctions imposed in their country of domicile.
The Association and its Managers and Members may be affected by sanctions, whether imposed by national authorities (e.g. the US and UK governments) or supranational authorities (e.g. the UN or EU). While Members may not be directly subject to sanctions, they may nevertheless be affected if those sanctions apply to the Association or its Managers and impact on the ability of the Association to provide cover.
Our Members should therefore be aware of the potential restrictions placed upon them either by the trade in question or financial transactions. The latest position on Sanctions and Club cover is contained in our Focus page.
TYPES OF SANCTIONS
Financial sanctions can include prohibitions on all transactions including financial transactions, such as insurance or reinsurance, relating to a particular country, region or government.
Financial sanctions can also impose prohibitions against making funds or economic resources available to certain entities or individuals for certain purposes. These sanctions often require the freezing of funds or the assets of governments, entities or individuals. “Smart” sanctions refer to targeted sanctions instead of comprehensive sanctions and can prohibit indirect connections or dealings with designated entities or persons rather than countries.
Trade sanctions are measures that prohibit trading with a particular country such as export and import bans, or placing embargoes on dealing with commodities from certain countries. These commodities can include oil, timber, diamonds or arms. This means that the provision of insurance or reinsurance in connection with such restricted trade, or certain risks subject to sanctions, may also be prohibited.
There are specific sanctions in place to prevent terrorism after a United Nations resolution in 2001 became binding on all UN member states. The resolution requires member states to deny financial support for those involved in, or supporting, terrorism. Additionally, the resolution enforces the sharing of information about terrorists between governments.
Sanctions are in place prohibiting or restricting the supply of all or certain types of weapons to certain specified countries.
The United Kingdom Bribery Act 2010 came into force on 1 July 2011, reforming the UK’s criminal law of bribery. The Act also provided for a new consolidated list of bribery offences covering bribery both in the UK and overseas. Therefore, it is highly relevant both to us at the Association and our Managers, and, of course, any third parties with whom the Association and its Managers have dealings, and to our Members.
The act defines four criminal offences:
- Giving, promising or offering a bribe;
- Requesting, agreeing to receive or accepting a bribe;
- Bribing a foreign public official;
- Failure by a company to prevent active bribery being committed on its behalf.
The offences covered in the Act carry criminal penalties for both the Association and its Managers and individuals.
A zero tolerance approach
The Association and its Managers are committed to maintaining the highest business standards and have a zero tolerance approach to bribery and corruption. This extends to all business dealings, transactions in all countries and to all business counterparties including any individual or organisation doing business with the Association or its Managers.
Preventing and reporting bribery
All those working on behalf of the Association and its Members have a responsibility to prevent and report bribery and are encouraged to raise concerns with the Managers about any issue or suspicions at the earliest possible stage to the Finance Director, Tindall Riley. The Finance Director is Jo Rodgers (Tel No +44 (0) 20 7407 3588; email firstname.lastname@example.org).
ANTI-MONEY LAUNDERING POLICY
The Proceeds of Crime Act 2002, the Terrorism Act 2000, and the Money Laundering Regulations 2007 all place obligations under UK law on the Association and its Managers and their employees with respect to suspected money laundering.
Money Laundering is defined as “the process used by criminals to disguise the origin and ownership of the proceeds of their criminal activities in order to avoid prosecution, conviction and confiscation”.
The following constitute primary money laundering offences:
- Concealing, disguising, converting or transferring criminal property;
- Entering into or becoming concerned in an arrangement which you know or suspect facilitates the acquisition, retention, use or control of criminal property by or on behalf of another person; or
- Acquiring, using or possessing criminal property.
The following constitute primary money laundering offences:
- Failure to disclose any of the above primary offences; and tipping off.
- Tipping off is when someone informs a person or people who are, or who are suspected of being, involved in money laundering, in such a way it would affect the investigation.
The money laundering offences carry criminal penalties, for both the Association/its Managers and individuals.
As a mutual insurer we are committed to do all we can to prevent the Association, its Managers, their employees and Members being exposed to money laundering where possible, to identify the potential areas where it may occur, and to comply with all legal and regulatory responsibilities, especially with regard to the reporting of actual or suspected cases.
If an employee of the Association or its Managers knows or suspects that money laundering or any other suspicious activity is occurring they must report their suspicions immediately to the nominated officer who will then provide information on how to proceed.
The officer nominated to receive disclosures about money laundering activity is Jo Rodgers (Tel No +44 (0) 20 7407 3588; email email@example.com).