Indicators of Money Laundering
The following instances may prove as indicators of money laundering:
- Expensive policies or purchases taken out and then cancelled.
- Policies taken out or purchases made for no apparent reason.
- Requests for refunds or claims payments to be made to unconnected third parties.
- Transactions in-congruent with the client’s usual dealings.
- Reluctance or difficulties in providing identification.
- Large claims shortly after an insurance policy has been effected.
- An unusual interest in early surrender values.
- Large cash payments or overpayments.
- Requesting cover for assets in countries where drugs trade is prevalent.
- Investments and savings, particularly with options for early surrender.
- Lump sum investments and pension arrangements.
Other risk areas identified by recent amendments to the Money Laundering Regulations include:
- Mobile banking.
- Virtual currencies.
- Cyber crime.
- Data security.
- Unregulated investments