According to the Financial Action Task Force's (FATF's) "Guidance for a Risk-Based Approach Life Insurance Sector," which of the following are money laundering red flags relating to the involvement…

Question

Options

• AA customer engages an attorney to consult on the issuance of the policy.
• BA customer transfers the policy to another insurance company unaffiliated with the original policy
• CPayments are regularly received from third parties that have no apparent relationship with the
• DA customer names an apparently unrelated third party as a beneficiary.

• A
  5% (2)
• B
  10% (4)
• C
  86% (36)

Explanation

FATF and CAMS 6th Edition highlight certain third-party activities as red flags for money laundering in the life insurance sector: Payments are regularly received from third parties that have no apparent relationship with the policy holder (C):"Red flags include payments made by third parties, especially where there is no apparent connection between the third party and the policy holder."(FATF, Risk-Based Approach for Life Insurance Sector, Section IV: Red Flags; CAMS 6th Edition, Customer Due Diligence for A customer names an apparently unrelated third party as a beneficiary (D):"Another warning sign is when beneficiaries have no apparent relation to the policyholder."(FATF, Ibid; CAMS 6th Edition, Life Insurance ML/TF Red Flags)

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