AML EXAM ANTI-MONEY LAUNDERING
WEBCE Questions and Answers Latest Update
2025 Already Graded A+
As part of the life insurance application process in compliance with AML
requirements, producers are required to obtain all of the following information
EXCEPT:
a. the applicant's Social Security or tax identification number
b. the applicant's residential address
c. the beneficiary's date of birth
d. the applicant's full legal name
Ans: c. the beneficiary's date of birth
That's correct! Required information includes the applicant's full legal name, date
of birth, residential address, and SSN or TIN. Beneficiary information is not
required.
All of the following are required elements of an insurance company's AML
program EXCEPT:
a. designating an AML compliance officer
b. certifying every employee and appointed producer with FinCEN
c. maintaining an ongoing training program
d. periodically testing the AML program through independent audit
,Ans: b. certifying every employee and appointed producer with FinCEN
That's correct! The USA PATRIOT Act requires companies to develop and
implement an AML program, designate an AML compliance officer, maintain an
ongoing training program, and periodically test the AML program through an
independent audit. While employees and appointed producers are expected to
know and comply with a company's AML program, they are not required to
receive FinCEN (or any other) certification.
In determining the need to report suspicious activity, all of the following are
considered to be "transactions" EXCEPT:
a. All premiums are paid with money orders.
b. The initial premium deposit is paid by wire transfer.
c. Cash value transfers are made between policies (or via a 1035 exchange).
d. Participating policy dividends are used to purchase paid-up additions.
Ans: d. Participating policy dividends are used to purchase paid-up additions.
That's correct! For purposes of threshold determination, transfers of funds from
almost any source are subject to review. The exercise of participating policy
dividend options is generally excluded.
FinCEN rules require that the person who fills out and files an SAR must be the
person who actually detects or witnesses the suspicious activity.
a. True
b. False
Ans: b. False
That's correct! A producer or company employee who detects a red flag or any
other suspicious activity is only required to report the suspicion to a manager or
designated compliance principal. The insurance company's compliance officer, not
, the producer or employee, determines whether to file an SAR and report the
case to federal authorities.
What must a Form 8300 be filed in conjunction with?
a. all cash or cash equivalent receipts exceeding $5,000
b. any cash or cash equivalent receipts exceeding $5,000 that also raise a red flag
c. all cash or cash equivalent receipts exceeding $10,000
d. any cash or cash equivalent receipts exceeding $10,000 that also raise a red flag
Ans: c. all cash or cash equivalent receipts exceeding $10,000
That's correct! Financial institutions must report all cash or cash equivalent
receipts (or series of related receipts) exceeding $10,000 using Form 8300. An
SAR is required to report transactions exceeding $5,000 that have also raised one
or more red flags.
An agent knows that her insurance company has an AML policy in effect, but the
$100,000 in money orders her customer is using to fund the purchase of a single
premium whole life insurance policy would help her meet her sales goal for the
year. Consequently, she overlooks the source of funds and submits the application
to her company. From an AML perspective, the agent has:
a. complied with the minimum requirement of her company's AML policy
b. provided outstanding customer service
c. committed the crime of perjury
d. engaged in willful blindness
Ans: d. engaged in willful blindness
That's correct! Willful blindness is the deliberate avoidance of knowledge of facts
WEBCE Questions and Answers Latest Update
2025 Already Graded A+
As part of the life insurance application process in compliance with AML
requirements, producers are required to obtain all of the following information
EXCEPT:
a. the applicant's Social Security or tax identification number
b. the applicant's residential address
c. the beneficiary's date of birth
d. the applicant's full legal name
Ans: c. the beneficiary's date of birth
That's correct! Required information includes the applicant's full legal name, date
of birth, residential address, and SSN or TIN. Beneficiary information is not
required.
All of the following are required elements of an insurance company's AML
program EXCEPT:
a. designating an AML compliance officer
b. certifying every employee and appointed producer with FinCEN
c. maintaining an ongoing training program
d. periodically testing the AML program through independent audit
,Ans: b. certifying every employee and appointed producer with FinCEN
That's correct! The USA PATRIOT Act requires companies to develop and
implement an AML program, designate an AML compliance officer, maintain an
ongoing training program, and periodically test the AML program through an
independent audit. While employees and appointed producers are expected to
know and comply with a company's AML program, they are not required to
receive FinCEN (or any other) certification.
In determining the need to report suspicious activity, all of the following are
considered to be "transactions" EXCEPT:
a. All premiums are paid with money orders.
b. The initial premium deposit is paid by wire transfer.
c. Cash value transfers are made between policies (or via a 1035 exchange).
d. Participating policy dividends are used to purchase paid-up additions.
Ans: d. Participating policy dividends are used to purchase paid-up additions.
That's correct! For purposes of threshold determination, transfers of funds from
almost any source are subject to review. The exercise of participating policy
dividend options is generally excluded.
FinCEN rules require that the person who fills out and files an SAR must be the
person who actually detects or witnesses the suspicious activity.
a. True
b. False
Ans: b. False
That's correct! A producer or company employee who detects a red flag or any
other suspicious activity is only required to report the suspicion to a manager or
designated compliance principal. The insurance company's compliance officer, not
, the producer or employee, determines whether to file an SAR and report the
case to federal authorities.
What must a Form 8300 be filed in conjunction with?
a. all cash or cash equivalent receipts exceeding $5,000
b. any cash or cash equivalent receipts exceeding $5,000 that also raise a red flag
c. all cash or cash equivalent receipts exceeding $10,000
d. any cash or cash equivalent receipts exceeding $10,000 that also raise a red flag
Ans: c. all cash or cash equivalent receipts exceeding $10,000
That's correct! Financial institutions must report all cash or cash equivalent
receipts (or series of related receipts) exceeding $10,000 using Form 8300. An
SAR is required to report transactions exceeding $5,000 that have also raised one
or more red flags.
An agent knows that her insurance company has an AML policy in effect, but the
$100,000 in money orders her customer is using to fund the purchase of a single
premium whole life insurance policy would help her meet her sales goal for the
year. Consequently, she overlooks the source of funds and submits the application
to her company. From an AML perspective, the agent has:
a. complied with the minimum requirement of her company's AML policy
b. provided outstanding customer service
c. committed the crime of perjury
d. engaged in willful blindness
Ans: d. engaged in willful blindness
That's correct! Willful blindness is the deliberate avoidance of knowledge of facts
