The healthcare sector is regulated by a number of global laws and standards that aim to ensure the safety and quality of healthcare services and to prevent financial crimes such as money laundering and terrorist financing. These regulations often include requirements for Know Your Customer (KYC) and anti-money laundering (AML) processes.
Following are few of the regulatory bodies that have recently updated the regulations for the healthcare sector pertaining to KYC/AML:
ISO
One of the main global regulations for the healthcare sector in KYC and AML is the International Organization for Standardization's (ISO) standard 27001. This standard sets out best practices for information security management, including requirements for identifying and assessing customers and monitoring and reporting suspicious activity.
HIPAA
Another important global regulation is the Health Insurance Portability and Accountability Act (HIPAA) in the United States. HIPAA sets out rules for the protection of personal health information and requires healthcare organizations to implement appropriate safeguards, including KYC and AML processes.
FATF
The Financial Action Task Force (FATF) is a global organization that sets standards for the prevention of money laundering and terrorist financing. Many countries have adopted the FATF's recommendations, which include requirements for KYC and AML processes in the healthcare sector.
News Updates
- The Financial Action Task Force (FATF) has updated its guidance on the healthcare sector. In October 2021, the FATF released updated guidance on the risks of money laundering and terrorist financing in the healthcare sector and how to address those risks. The guidance includes recommendations for KYC and AML processes, as well as specific guidance on the risks associated with the procurement of medical supplies and the use of alternative payment methods.
- The European Union (EU) has adopted new rules on the prevention of money laundering and terrorist financing. In December 2021, the EU adopted the Fifth Money Laundering Directive (5MLD), which updates and strengthens the EU's rules on the prevention of money laundering and terrorist financing. The 5MLD includes specific provisions for the healthcare sector, including requirements for risk assessments, customer due diligence, and ongoing monitoring.
- The UK has implemented new regulations on the prevention of money laundering and terrorist financing. In January 2022, the UK implemented the Money Laundering and Terrorist Financing (Amendment) Regulations 2021, which update and strengthen the UK's existing rules on the prevention of money laundering and terrorist financing. The regulations include specific provisions for the healthcare sector, including requirements for risk assessments, customer due diligence, and ongoing monitoring.
In addition to these global regulations, there are also a number of national laws and regulations that apply to the healthcare sector in KYC and AML. For example, the UK has the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, which apply to healthcare organizations and require them to implement appropriate KYC and AML processes.
Conclusion
Overall, the healthcare sector is subject to a range of global and national regulations that require the implementation of effective KYC and AML processes. These regulations are designed to protect the safety and quality of healthcare services, as well as to prevent financial crimes such as money laundering and terrorist financing. It is important for healthcare organizations to be aware of these regulations and to implement appropriate measures to ensure compliance.
