CAMS · Question #545
An internal review of anti-money laundering training documentation revealed only new agents employed by a financial institution that sells life insurance products were trained. Additionally, it…
The correct answer is B. Pro duct-specific anti-money laundering training should be provided company-wide. The internal review would most likely recommend that the institution provide product-specific anti- money laundering training to all relevant employees, not just actuaries. This is because life insurance products can be used for money laundering purposes, such as purchasing…
Question
An internal review of anti-money laundering training documentation revealed only new agents employed by a financial institution that sells life insurance products were trained. Additionally, it typically took the institution 8 months to begin training for new actuaries. The compliance officer explained training was limited to actuaries because they perform the only high-risk function. The institution relied on e-learning techniques without follow-up assessment. Which of the following issues would the internal review most likely recommend?
Options
- AAll staff, apart from the Board of Directors, must be trained.
- BPro duct-specific anti-money laundering training should be provided company-wide.
- CThe institution must provide anti-money laundering training to actuaries within 6 months.
- DContinue using e-learning to emphasize anti-money laundering content during training.
How the community answered
(32 responses)- A9% (3)
- B84% (27)
- C3% (1)
- D3% (1)
Explanation
The internal review would most likely recommend that the institution provide product-specific anti- money laundering training to all relevant employees, not just actuaries. This is because life insurance products can be used for money laundering purposes, such as purchasing policies with illicit funds, surrendering policies for cash value, or using policies as collateral for loans. Therefore, all employees who are involved in selling, servicing, or processing life insurance products should be aware of the money laundering risks and red flags associated with these products, and how to report any suspicious activity. The institution should also ensure that the training is timely, effective, and tailored to the specific roles and responsibilities of the employees.
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