Which of the following risk factors are commonly associated with money laundering in insurance products? (Choose two.)

The correct answer is A. Surrendering a policy early to liquidate funds D. Using cryptocurrencies or other non-fiat currencies to fund an insurance policy. Early surrender of a policy can be used to quickly access and integrate illicit funds, while funding an insurance policy with cryptocurrencies or other non-fiat currencies can obscure the source of funds, both of which are recognized money laundering risk factors in insurance pro

Risks and Methods of Money Laundering and Terrorist Financing

Question

Options

ASurrendering a policy early to liquidate funds
BFocusing excessively on the investment performance of an insurance product
CUsing a credit card to purchase an insurance policy
DUsing cryptocurrencies or other non-fiat currencies to fund an insurance policy

How the community answered

(22 responses)

A
77% (17)
B
9% (2)
C
14% (3)

Explanation

Early surrender of a policy can be used to quickly access and integrate illicit funds, while funding an insurance policy with cryptocurrencies or other non-fiat currencies can obscure the source of funds, both of which are recognized money laundering risk factors in insurance products.

Topics

#insurance products#early policy surrender#money laundering red flags#cryptocurrency

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