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