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: