CAMS · Question #807
During a routine periodic KYC refresh of a policyholder and client of an insurance company, updated business registry documentation has highlighted that the policyholder's business has changed…
The correct answer is A. Investigate the changes of address and change of UBO and in the meantime decline payment. The combination of frequent address changes and a recent change in the ultimate beneficial owner raises potential red flags that warrant immediate investigation. To mitigate risk, the insurance company should investigate these changes and temporarily decline any payment or…
Question
During a routine periodic KYC refresh of a policyholder and client of an insurance company, updated business registry documentation has highlighted that the policyholder's business has changed addresses five times during the last year and that the ultimate beneficial owner (UBO) changed two weeks ago. What actions should be taken immediately?
Options
- AInvestigate the changes of address and change of UBO and in the meantime decline payment
- BRequest the relationship manager set up a meeting with the policyholder to update their address
- CInvestigate the changes of address and change of UBO and in the meantime freeze the client's
- DFile a suspicious transaction report because the insurance company was not made aware of the
How the community answered
(36 responses)- A86% (31)
- B3% (1)
- C8% (3)
- D3% (1)
Explanation
The combination of frequent address changes and a recent change in the ultimate beneficial owner raises potential red flags that warrant immediate investigation. To mitigate risk, the insurance company should investigate these changes and temporarily decline any payment or withdrawal instructions until the review is complete and appropriate steps are agreed upon. This ensures both regulatory compliance and protection against potential misuse of the policy.
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