National Insurance Comission, NAICOM, has warned insurance operators that no comp nay will be spared if investigations prove that anti-money laundering laws and debt financing rules were breached during the just concluded recapitalization exercise.
It added that appropriate sanctions including immediate arrangement for acquisition and take- over of the company concerned, shall be made with a healthy and well-managed existing insurance company.
According to the commission, this arrangement would ensure that all the assets and liabilities of the offending company shall be subsumed in the existing company and continue with policies of the company as was done in the recently concluded exercise which ended with zero liquidation.
Prior to this suspension, Emmanuel Chukwulozie, commissioner for Insurance, called on the operators to be law abiding and play by the rules, warning that any investigation and report to the contrary would necessitate NAICOM to ensure that the law takes its course.
“We all believed that the companies that compiled with the verification exercise can attest to the genuineness of their source of funds ensuring that they complied with the anti-money laundering laws of the federal government and that they are not borrowed money”, he said.
He assured that a brand new insurance industry that urgently seeks to restore optimal confidence in the system has emerged and no unserious player would be tolerated.
Complied by BISI OLADAPO
