Anti-Money Laundering Quiz Anti-Money Laundering Quiz Please complete the questions below. What is your name? What is your six-digit agent number? Federal regulations include penalties for insurance companies and individuals. True False The agent's responsibility ends with the sale. True False Money Laundering facilitates illegal acts such as drug trafficking and terrorism. True False Never notify a client his or her activities may be reported as suspicious. True False Establishing and following "Know Your Customer" policies and procedures is one of the most important deterrents to money laundering. True False The majority of clients are not involved in money laundering so it is important to be able to identify routine transactions versus suspicious transactions. True False The three stages of the mechanics of money laundering are: Placement/Layering/Integration Integration/Exchange/Reporting Placement/Exchange/Transactions Information to be collected from the client includes: Name and Address Date of Birth Social Security Number All Of The Above Federal rules require records be maintained for: 1 year 5 years 10 years Red flags include: Unusually great concern with the agent or insurance companies' compliance with reporting requirement Large overpayment of premiums Applicant who purchases policies from several institutions in a short period of time Change of address to or change of ownership involving foreign countries Applicant wants to borrow the maximum cash value of a single premium policy soon after paying for the policy Applicant applies for a large insurance policy and within a short period of time cancels the policy and requests the cash value returned to a third party Applicant requests to make a lump sum payment by wire transfer or with foreign currency Applicant is reluctant to provide normal information, provides minimal or fictitious information, or provides information that is difficult or expensive to verify Applicant is unwilling to provide information for identity verification Applicant shows little concern for the investment performance of a product but more concern about the early termination features The transfer of ownership or benefit of the product to an apparently unrelated third party The early termination of a policy, especially at a cost to the customer or where cash was used or the refund check is directed to an apparently unrelated third party Any unusual method of payment; particularly by cash or cash equivalents Applicant who purchases policies in amounts considered beyond his/her apparent means All of the above Time is Up! Time's up
