Anti-Money Laundering: Update 2021
Presented by: Patrick D. Hatting, MBA, ChFC, CLU, CASL, LUTCF
Money laundering is the process that disguises the existence, nature, or source of illegally obtained funds from business activity such as illegal drugs and human trafficking to make them appear legitimate. The source of funds could be from any illegal activity such as bribery, theft, fraud, embezzlement and counterfeiting. We will define money laundering, discuss agent responsibilities in reference to anti-money laundering, identify red flags and report suspicious activity. It’s rare and unlikely for this to occur in the insurance industry, however, the industry is required to have a program and make sure training is accomplished. Discussion about techniques money-launderers employ and what we should do if we suspect money laundering is taking place.
The insurance industry is a great big target and everyone in our industry must be knowledgeable in order to put up your best defense. In the wake of September 11, 2001, the USA PATRIOT Act was passed when we learned terrorist leaders used money laundering to finance the events of 911. Title III of the PATRIOT Act addresses money laundering and expands the Bank Secrecy Act of 1970 to include all financial institutions, including life insurance companies, and focuses on any financial transaction that might be involved in terrorist financing. We will examine two cases of money laundering and apply the material learned. This course is designed to fulfill your ethics credit or may be applied to your general credit when renewing your license.