CAMS · Question #962
CAMS Question #962: Real Exam Question with Answer & Explanation
The correct answer is C. Payments are regularly received from third parties that have no apparent relationship with the D. A customer names an apparently unrelated third party as a beneficiary.. 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
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.
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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