Anti-Money Laundering - Ethical Decision Making for Insurance Producers

Which of the following is considered a higher risk business?

Pawn Shop

Which of the following insurance products is NOT considered a "covered product" under the anti-money laundering laws?

Property and Casualty Insurance

Insurance companies are required to file Form 8300 for all cash transactions of more than

$10,000

The Bank Secrecy Act requires insurance companies to report cash transactions of more than what minimum?

$10,000

For a minimum of how many years must insurers maintain SAC-IC reports and supporting documentation?

5 years

Who is responsible for filing a Suspicious Activity Report?

AML Compliance Officer

An insurer is working to develop a risk-based approach to an anti-money laundering program. It should consider all of the following EXCEPT

Agent's ethic training

Regarding OFAC's SDN list, which of the following is NOT a responsibility of insurance companies?

Complete the transaction request of the SDN

Which is the form of payment that an insurance company is least likely to accept?

Cash

Which of the following would be EXCLUDED from the definition of covered products under the USA PATRIOT Act?

Charitable annuities

Relating to the filing of a SAR, which of the following activities is prohibited?

Disclosing the filing to the customer

Which stage of the money laundering process results in the criminal receiving money, usually in the form of a check from a U.S. financial institution, which now appears legitimate?

Integration

Sally used multiple transactions to further conceal the origin of the illegal cash. Which step of money laundering does this represent?

Layering

Transferring funds to and from numerous accounts in one of more financial institutions with the intentions of confusing the paper trail is called

Layering

The process of converting funds obtained through criminal activity into what appears to be legitimately acquired money and integrating it into the national and/or international financial systems is called

Money laundering

A financial institution would need to file a Currency Transaction Report for which of the following transactions?

Single transaction involving $11,000 in currency

A person breaks a large cash deposit into several smaller deposits with the intention of evading the filing of a Currency Transaction Report. This is called

Structuring

Regarding new accounts, which of the following scenarios would NOT concern an insurance company?

The customer has provided detailed information regarding her identity and the source of funds used to purchase the product.

An insurer blocks a transaction with a customer because the customer is on the Specialty Designated Nationals list. Which of the following is most likely to inform that customer that the transaction has been blocked?

The insurer

Jurors deliberating over a case involving an insurance agent accused of ignoring signs that a client was laundering money through his insurance products may recieve guidance regarding what qualifies as conscious avoidance from

The judge

Money laundering activities can be divided into how many phases?

Three

From which of the following do most anti-money laundering regulations originate?

USA PATRIOT Act

What is the first step in a Customer Identifications Program?

Verify the identity of the customer