AML QUIZ
What are the 2 red flags with FinCEN? - ANSWERS-an aggregate of at least $5,000
in funds or other assets
facts or circumstances of the case that raise suspicion
What is a red flag? - ANSWERS-A red flag is any fact or circumstance that is
outside the customer's typical actions, especially where the economic gain is not
obvious or clear.
A producer or employee who detects a red flag or any other suspicious activity is
only required to report the suspicion to - ANSWERS-a manager or designated
compliance principal.He or she should never discuss the concerns with the
customer.
Suspicious activity is reported b - ANSWERS-by the insurance company (not the
agent or broker) to FinCEN using Form SAR-IC (Suspicious Activity Report by
Insurance
According to FinCEN, the types of suspicious activities that prompt the majority of
SAR filings by insurance companies are: - ANSWERS-excessive insurance
excessive or unusual cash borrowing against a policy or annuity
proceeds sent to unrelated third parties
suspicious life settlement sales (i.e., STOLIs, viaticals)
,suspicious termination of a policy or contract
unclear or no insurable interest
companies are required to report all cash receipts exceeding - ANSWERS-$10,000
without red flags
What is Form 8300? - ANSWERS-Report of Cash Payments Over $10,000 Received
in a Trade or Business") within 15 days of receipt of either of the following:
individual cash (or cash equivalent) payments exceeding $10,000
two or more related transactions totaling cash (or cash equivalent) payments
exceeding $10,000
FinCEN's final rules prohibit an insurance company from disclosing the fact that it
has filed a Suspicious Activity Report - ANSWERS-to even the consumer
Insurance companies are required to maintain copies of SAR-ICs and the original
or business record equivalent (such as scanned copies) of any supporting
documentation for a minimum - ANSWERS-of five years from the date of filing.
Chapter 3 summary - ANSWERS-An effective anti-money laundering program uses
a risk-based compliance process that reflects the company's unique set of money
laundering risks. The process is designed to monitor and detect suspicious activity
as it relates to the company's covered products.
, A producer or 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 and should never discuss the concerns with the customer.
The company's AML process will escalate the case through compliance review
before deciding if it will be reported to FinCEN. It is the insurance company's
compliance officer—not the producer—who reports the case to federal
authorities.
Suspicious activity is reported using Form SAR-IC. It may be filed with any case
about which the company has suspicions, but it must be filed for any covered
insurance product transaction (or related series of transactions) that exceeds
$5,000 in value and raises at least one red flag.
SAR-ICs must be filed within 30 days of when the suspicious transaction was first
detected.
Once filed, SAR-ICs must be retained for five years from the date of filing.
In addition to Form SAR-IC, insurance companies are required to report cash (or
cash equivalent) receipts exceeding $10,000. Insurance companies use Form 8300
for this reporting.
SAR-ICs must be filed - ANSWERS-within 30 days of when the suspicious
transaction was first detected.
FinCEN rules require that the person who fills out and files an SAR-IC must be the
person who actually detects or witnesses suspicious activity
A) True
B) False - ANSWERS-False
What are the 2 red flags with FinCEN? - ANSWERS-an aggregate of at least $5,000
in funds or other assets
facts or circumstances of the case that raise suspicion
What is a red flag? - ANSWERS-A red flag is any fact or circumstance that is
outside the customer's typical actions, especially where the economic gain is not
obvious or clear.
A producer or employee who detects a red flag or any other suspicious activity is
only required to report the suspicion to - ANSWERS-a manager or designated
compliance principal.He or she should never discuss the concerns with the
customer.
Suspicious activity is reported b - ANSWERS-by the insurance company (not the
agent or broker) to FinCEN using Form SAR-IC (Suspicious Activity Report by
Insurance
According to FinCEN, the types of suspicious activities that prompt the majority of
SAR filings by insurance companies are: - ANSWERS-excessive insurance
excessive or unusual cash borrowing against a policy or annuity
proceeds sent to unrelated third parties
suspicious life settlement sales (i.e., STOLIs, viaticals)
,suspicious termination of a policy or contract
unclear or no insurable interest
companies are required to report all cash receipts exceeding - ANSWERS-$10,000
without red flags
What is Form 8300? - ANSWERS-Report of Cash Payments Over $10,000 Received
in a Trade or Business") within 15 days of receipt of either of the following:
individual cash (or cash equivalent) payments exceeding $10,000
two or more related transactions totaling cash (or cash equivalent) payments
exceeding $10,000
FinCEN's final rules prohibit an insurance company from disclosing the fact that it
has filed a Suspicious Activity Report - ANSWERS-to even the consumer
Insurance companies are required to maintain copies of SAR-ICs and the original
or business record equivalent (such as scanned copies) of any supporting
documentation for a minimum - ANSWERS-of five years from the date of filing.
Chapter 3 summary - ANSWERS-An effective anti-money laundering program uses
a risk-based compliance process that reflects the company's unique set of money
laundering risks. The process is designed to monitor and detect suspicious activity
as it relates to the company's covered products.
, A producer or 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 and should never discuss the concerns with the customer.
The company's AML process will escalate the case through compliance review
before deciding if it will be reported to FinCEN. It is the insurance company's
compliance officer—not the producer—who reports the case to federal
authorities.
Suspicious activity is reported using Form SAR-IC. It may be filed with any case
about which the company has suspicions, but it must be filed for any covered
insurance product transaction (or related series of transactions) that exceeds
$5,000 in value and raises at least one red flag.
SAR-ICs must be filed within 30 days of when the suspicious transaction was first
detected.
Once filed, SAR-ICs must be retained for five years from the date of filing.
In addition to Form SAR-IC, insurance companies are required to report cash (or
cash equivalent) receipts exceeding $10,000. Insurance companies use Form 8300
for this reporting.
SAR-ICs must be filed - ANSWERS-within 30 days of when the suspicious
transaction was first detected.
FinCEN rules require that the person who fills out and files an SAR-IC must be the
person who actually detects or witnesses suspicious activity
A) True
B) False - ANSWERS-False
