Financial products offered by insurance companies that provide a payout to beneficiaries upon the insured individual's death or after a specified period, often featuring cash-value accumulation and investment components.
Main/
Life Insurance Products
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Code
PS0021
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Name
Life Insurance Products
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Version
1.0
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Category
Insurance & Risk Management
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Created
2025-03-14
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Modified
2025-04-02
Related Techniques
- Criminals overfund these policies with contributions well above typical needs, sometimes from third-party payers unrelated to the insured.
- They then request partial surrenders or early withdrawals, accepting surrender charges as a laundering cost.
- The resulting payouts appear as legitimate insurance disbursements, obscuring the illicit origins of the funds.
- Criminals purchase life insurance policies with illicit funds or via third-party payers from multiple jurisdictions.
- By surrendering the policy prematurely, they obtain payouts that appear legitimate insurance disbursements.
- They may obscure ownership by designating unrelated beneficiaries and layering premium payments to avoid detection.
- Despite incurring high surrender fees, the covert transformation of criminal proceeds into apparently lawful returns justifies the cost.
- Allow frequent changes of policy beneficiaries, making it difficult to trace the true owner or beneficiary.
- Provide an investment or savings component that can be repurposed to layer and conceal illicit funds.
- Exploit regulatory gaps where beneficiary updates are not closely monitored or reported.
- Criminals frequently alter policyholders or beneficiaries to obscure the true ownership of illicit funds.
- High-value or single-premium life policies can be rapidly funded and surrendered, creating layers that impede AML tracing.
- Criminals overfund life insurance policies with illicit proceeds, disguising them as legitimate premium payments.
- They then request early withdrawals or surrenders, presenting them as standard policy disbursements, thus layering illicit funds through an apparently normal insurance transaction.