The compliance officer should provide a high level summary of the activity and the interactions with law enforcement to the board of directors, as this would be the most appropriate way to escalate the information without compromising the confidentiality of the STR or the ongoing investigation. Providing a copy of the STR or the letter from law enforcement could expose the bank to legal risks or jeopardize the investigation.
Informing the regulator to bring it up with the board would not be sufficient, as the compliance officer has the responsibility to report directly to the board on significant compliance issues.
ACAMS CAMS Certification Video Training Course, Module 5: Risk Management, Lesson 5.3: Reporting to Senior Management and the Board1 ACAMS CAMS Certification Study Guide, 6th Edition, Chapter 5: Risk Management, Section 5.3:Reporting to Senior Management and the Board2

Money launderersexploit corporate structuresthat offeranonymityandreduced transparency.
Option A (Correct):Nominee shareholders and directorscan be used tohide true beneficial ownership.
Option C (Correct):Bearer sharesallowownership to transfer anonymously, amajor AML risk.
Option E (Correct):Tax haven companieswithsecrecy lawsare frequently used formoney laundering.
Option B (Incorrect):A private companywithout activitydoes not inherently pose anAML risk.
Option D (Incorrect):LLCscan be transparentif properKYC and reporting measuresare in place.
Reference:FATF Recommendation 24 (Transparency and Beneficial Ownership), Wolfsberg Group Guidance on Legal Entities, EU AMLD Corporate Ownership Directives.

The customer purchased property insurance that is twice the value of the business indicates potential money laundering. This could be a sign of insurance fraud, which is one of the predicate offenses for money laundering. Insurance fraud involves making false or exaggerated claims to obtain illegitimate financial benefits from an insurance company. The customer may have purchased an excessive amount of insurance to cover the value of the property and then intentionally damage or destroy it to claim the insurance payout. The customer may then use the insurance money to launder the proceeds of other criminal activities.
CAMS Study Guide, 6th Edition, Chapter 1, Section 1.21
CAMS Study Guide, 6th Edition, Chapter 3, Section 3.21
ACAMS Chapter 1 Exam Questions, Question 682
6th Anti-Money Laundering Directive (6AMLD): Biggest Changes, Section 23

The Egmont Group's 100 Cases1, the Financial Action Task Force Typologies2, and FinCEN's SAR Activity Review3 are all sources of information related to money laundering trends, methods, and risks. They provide examples, analysis, and guidance on how to detect, prevent, and report money laundering and other financial crimes. The Wolfsberg Principles4, on the other hand, are a set of global standards for the prevention of moneylaundering in the correspondent banking and private banking sectors. They are not intended to provide information on money laundering trends, but rather to establish best practices and minimum requirements for financial institutions to comply with anti-money laundering regulations and expectations.
Egmont Group's 100 Cases1
Financial Action Task Force Typologies2
FinCEN's SAR Activity Review3
The Wolfsberg Principles4

According to the web sources I found, FATF Recommendation 18 requires financial institutions to implement group-wide programmes against money laundering and terrorist financing that include policies and procedures for sharing information within the group for AML/CFT purposes12. These programmes should also include compliance management arrangements, screening procedures for hiring employees, an independent audit function and ongoing employee training1.