In order to reduce fraud risks, a Company must undertake the following, at a minimum:
a.
A Company must have effective measures to deter, prevent, detect, report and remedy internal and external fraud.
b.
The Board and Senior Management are ultimately responsible for fraud Risk Management.
c.
A Company's fraud Risk Management system must cover strategy, organizational structure, policies and procedures. The fraud management strategy must be regularly reviewed by the Board and Senior Management to ensure that it continues to be effective.
d.
A Company must identify, assess, measure, monitor, control, report and mitigate fraud risk and create appropriate fraud Risk Management policies and procedures in its processes across the Company.
2.
A Company must require high standards for integrity in its Board and Staff as part of its business values and organizational culture. These standards must be communicated throughout the Company.
3.
The Board must approve the fraud Risk Management strategy and ensure that there are adequate resources, support and expertise for the effective implementation of such strategy. Any deviation from the fraud Risk Management strategy must require the Board's approval.
4.
Additional requirements concerning countering fraud in insurance may be imposed pursuant to Regulations or decisions, which may be issued by the Central Bank in this regard.