NAICOM to deploy technology to curb money laundering

The National Insurance Commission (NAICOM) of Nigeria is poised to introduce a Technology platform to manage insurers’compliance with the  money laundering Act. This is as a result of the failure of most insurance firms to install robust information technology platforms to harmonize their operations and ensure seamless reporting of transactions. NAICOM has then resolved to issue industry guidelines that would make operators develop and regularize their technology platforms.

The Nigerian insurance regulator, last year, secured a $1.5 million World Bank support to boost its e-regulation platform. The project was informed by the need to align with international best practices, adding that the initiative would ensure the migration from manual supervision to IT-driven supervision.

Deputy Commissioner, Finance and Administration, NAICOM, George Onekhena, said the commission was working on a modular system that would ensure that the operations of operators are managed. He said: “We are building a modular approach and the different components. So far, we are done with our system. If you want to build a system for the industry, you must have your system, and we are making substantial progress.

“Very soon, we are going to come up with industry guidelines on Information Technology which is going to define the kind of information technology infrastructure that is required by companies in the industry. Once that is done, we would start building on it. It is a major project that involves a lot of things and if one is not careful one will run into problems.”

The ‘Project e-regulation’ when operational, would allow seamless inter-connectivity between the Commission and the Insurance sector, thereby ensuring “real-time-direct data capture” and timely solvency monitoring. The industry’s proposed electronic insurance certificate has also been hindered because of poor submission of data to the Nigerian Insurers Association (NIA).