CA-Anti-Money Laundering

Insurance in the Money Laundering Process At first thought, one might wonder why insurance contracts would be attractive to money launderers. Underwriting requirements put the buyer and potential insured under…

Operation Capstone How real is Tom’s case? In today’s AML environment, it is difficult to imagine that a producer or company would not become suspicious and investigate the activity described…

The USA PATRIOT Act of 2001 In the days and weeks following the September 11, 2001, terrorist attacks, Congress worked to strengthen weaknesses in the U.S. economic system that may…

Overview Chapter 1 made clear the potential role certain types of cash value life insurance and annuity contracts can play in money laundering activities and terrorist financing. It is understandable,…

Know the Customer: CIP One of the most important AML rules is “Know the customer.” In addition to obtaining basic identifying information required by the company, this rule includes the…

Periodic AML Testing To detect suspicious circumstances, financial institutions use a screening process to spot certain “markers” that may necessitate a closer look. In this context, a “marker” is any…

Overview An insurance company’s AML compliance policy is meaningless if the company does not actively maintain a process for detecting, reviewing, and reporting suspicious activity. The USA PATRIOT Act (amended…

Reporting Suspicious Activity A producer or employee who detects a red flag or any other suspicious activity is only required to report the suspicion to a manager or designated compliance…

Overview We close the course with a look at the role employees and producers play in an insurance company’s AML program. The chapter’s objectives are to help financial professionals: understand…

New Business Red Flags Red flags to watch for during transactions involving the sale and issuance of new business include the following: The customer buys an insurance product that appears…

Willful Blindness It may be tempting to overlook a questionable premium payment, especially one involving thousands of dollars, but producers are not excused from AML compliance and reporting requirements on…

The last chapter of this course outlines recent case-studies involving real anti-money laundering issues.   CASE STUDY #1 – HSBC in money laundering The Issue             Some banking institutions have…