Which insurance product is particularly vulnerable to money laundering?

 According to the ACAMS study guide, one of the insurance products that is particularly vulnerable to money laundering is annuity, which is “a contract that provides a series of payments over a specified period of time, usually for the life of the annuitant” (p. 223). Annuities can be used by money launderers to deposit large sums of illicit funds in a single transaction, or to receive regular payments from a legitimate source after paying the premiums with dirty money. Annuities can also be surrendered or transferred to third parties, making it difficult to trace the origin and destination of funds.

ACAMS. (2020). Study Guide for the Certification Examination for Anti-Money Laundering Specialists (6th ed.). Miami, FL: ACAMS.

ComplyAdvantage. (2023)AML in Insurance: How to Detect & Combat Money Laundering 1. Retrieved from https://complyadvantage.com

Financial Crime Academy. (2023)Anti Money Laundering (AML) In Insurance Industry In 2021 2. Retrieved from https://financialcrimeacademy.org