Which insurance product is particularly vulnerable to money laundering?

The correct answer is A. Annuity. According to the ACAMS study guide, one of the insurance products that is particularly vulnerable to money laundering is annuity, which is "a contract that provides a series of payments over a specified period of time, usually for the life of the annuitant" (p. 223). Annuities…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

AAnnuity
BCasualty
CCollateral
DRegulated pension

How the community answered

(46 responses)

A
74% (34)
B
15% (7)
C
4% (2)
D
7% (3)

Explanation

According to the ACAMS study guide, one of the insurance products that is particularly vulnerable to money laundering is annuity, which is "a contract that provides a series of payments over a specified period of time, usually for the life of the annuitant" (p. 223). Annuities can be used by money launderers to deposit large sums of illicit funds in a single transaction, or to receive regular payments from a legitimate source after paying the premiums with dirty money. Annuities can also be surrendered or transferred to third parties, making it difficult to trace the origin and destination of funds.

Topics

#insurance products#annuities#money laundering vulnerability#early redemption

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