Early surrender of a policy can be used to quickly access and integrate illicit funds, while funding an insurance policy with cryptocurrencies or other non-fiat currencies can obscure the source of funds, both of which are recognized money laundering risk factors in insurance products.

Unusual activity lacking a clear business or economic purpose is a core AML red flag.
Investigations teams review escalated alerts to determine whether suspicious activity exists, whether additional information is needed, and whether regulatory reporting obligations should be fulfilled.

PEPs are recognized by CAMS 6th Edition and FATF as posing elevated risk due to:
A). The family members and close associates of PEPs may be involved in illicit activities:"The risks extend beyond the PEP to family members and close associates, who may be used to conceal the movement of illicit funds." C). PEPs may exploit embassy activities to conceal bribery and corruption transactions:"PEPs may use their position or diplomatic privileges, such as embassy operations, to disguise or facilitate the movement of illicit funds."

The CAMS 6th Edition specifically lists environmental crime as a predicate offense for money laundering. Environmental crimes include activities such as illegal logging, illegal mining, and illegal trade in wildlife.
"Environmental crime, including illegal logging and mining, is recognized as a predicate offense to money laundering. Such crimes often involve complex corporate structures to hide the illicit origin of the proceeds."

Segregation of duties limits opportunities for employees to manipulate transactions or conceal suspicious activity. Employee background screening, oversight, and ethical standards further reduce internal collusion risks and strengthen the integrity of AML compliance programs.