D: "Family members and close associates of PEPs are often used as intermediaries to launder the proceeds of corruption or conceal illicit assets."

Layering involves complex financial transactions intended to obscure the origin of illicit proceeds.
Repeated transfers lacking economic rationale are classic layering indicators because they create distance between criminal funds and their original source, making investigations more difficult for authorities and compliance teams.

Proliferation financingrefers to the act of providing financial services or funds for thedevelopment, acquisition, or delivery of nuclear, chemical, or biological weapons. The core threat involvesnetworks of individuals and entities using the financial systemto obtain sensitive technologies, materials, or knowledge forweapons of mass destruction (WMDs).
The Financial Action Task Force (FATF)identifies this as a major international security threat and requires institutions to assess and mitigate such risks.

Life insurance products vary significantly in their exposure to money laundering risk. FATF guidance and insurance-sector AML standards emphasize that flexibility, liquidity, and cross- border features increase product risk.
Products that allow changes to beneficiaries after policy inception present higher risk because criminals may initially name a legitimate beneficiary and later substitute another party to obscure the true recipient of funds. This flexibility can be exploited to disguise beneficial ownership.
Products with cash surrender values are particularly vulnerable to money laundering. Criminals may place illicit funds into policies and later redeem them, creating an appearance of legitimate insurance proceeds. This characteristic is widely recognized as a high-risk factor.
International coverage, including cross-border health insurance features, increases geographic risk exposure, particularly when funds or claims involve higher-risk jurisdictions with weaker AML controls.
By contrast, annuities with deferred income streams typically limit liquidity, reducing laundering risk. Products that restrict fund transfers further reduce misuse potential and are considered lower risk.

Reference data screening is a core element of AML/CFT programs and typically covers:
Customers (B):"All customers must be screened against sanctions, PEP, and adverse media lists as part of onboarding and ongoing due diligence." Third-party service providers (C):"Screening should extend to relevant third parties, such as agents and service providers, to prevent indirect exposure to sanctioned entities."