Domestic Terror Bill Could Lead to Life and Annuity Asset Freezes
January 22, 2020 by Allison Bell
The House is considering a draft bill that could regulate how financial institutions, including insurance companies, freeze the assets of customers arrested in connection with domestic terrorism allegations.
The bill, the “Freezing Assets of Suspected Terrorists and Enemy Recruits Act” draft bill, would require financial institutions to freeze the assets of people “arrested under suspicion of participating in domestic terrorism or providing material support to terrorists,” according to the draft language.
The draft bill could also establish a national clearinghouse for information on incidents involving domestic terrorism, according to the bill text.
For purposes of domestic terrorism asset freezes, the term “financial institution” would have the meaning given in Section 5312 of Title 31 in the U.S. Code, according to the draft bill. The Title 31 Section 5312 definition of financial institutions includes insurance companies.
In practice, most of asset freeze requests would probably involve annuities and cash-value life insurance policies.
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