Anti Money Laundering
Depositing illicit money in a financial institution is an example of
placement
Regulators recognize that there cannot be one-size-fits all AML program for all insurance companies for all the following reasons except
there are uniform methods of payment
Integration occurs when
Illegal money is mixed with legitimate business earnings
Which stage of the money laundering process involves carrying out a series of financial transactions to hide the illicit source of the funds?
Layering
Which of the following is NOT a reason why a financial institution would have a know your customer program?
To determine whether or not its program meets the requirements of the Bank Secrecy Act
Which of the following statements is NOT true about a red flag suspicious activity
Automatically requires the filing of a SAR
Which of the following is the international standard for combating money laundering activities?
The FATF's forty recommendations
What primary factor determines what information must be collected about a policy or contract owner for identification purposes?
Whether the insurance product under consideration is at a low or high risk for money laundering
Who determines which methods of payments are acceptable for the purchase of insurance policies?
Insurance company issuing the policy.
Whose regulations specify which accounts and transactions are subject to economic sanctions
OFAC - Office of Foreign Asset Control
Who maintains a list of specially designated nationals (SDNs), who are viewed as threats to the United States and are subject to specific governmental sections.
OFAC - Office of Foreign Asset Control
Which of the following is NOT a basic requirement for anti-money laundering programs?
Compliance with FATF's nine specials recommendations on terrorist financing
When does an insurance company particularly rely on an insurance agent to collect customer information?
at the point of sale