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FINTRAC’s list of industry specific indicators for Life insurance companies, brokers and agents that may point to a suspicious transaction:

par Alain Thériault | March 17 2014 08:30PM
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  • Client wants to use cash for a large transaction.
  • Client proposes to purchase an insurance product using a cheque drawn on an account other than his or her personal account.
  • Client requests an insurance product that has no discernible purpose and is reluctant to divulge the reason for the investment.
  • Client who has other small policies or transactions based on a regular payment structure makes a sudden request to purchase a substantial policy with a lump sum payment.
  • Client conducts a transaction that results in a conspicuous increase in investment contributions.
  • Scale of investment in insurance products is inconsistent with the client's economic profile.
  • Unanticipated and inconsistent modification of client's contractual conditions, including significant or regular premium top-ups.
  • Unforeseen deposit of funds or abrupt withdrawal of funds.
  • Involvement of one or more third parties in paying the premiums or in any other matters involving the policy.
  • Overpayment of a policy premium with a subsequent request to refund the surplus to a third party.
  • Funds used to pay policy premiums or deposits originate from different sources.
  • Use of life insurance product in a way that resembles use of a bank account, namely making additional premium payments and frequent partial redemptions.
  • Client cancels investment or insurance soon after purchase.
  • Early redemption takes place in the absence of a reasonable explanation or in a significantly uneconomic manner.
  • Client shows more interest in the cancellation or surrender of an insurance contract than in the long-term results of investments or the costs associated with termination of the contract.
  • Client makes payments with small denomination notes, uncommonly wrapped, with postal money orders or with similar means of payment.
  • The duration of the life insurance contract is less than three years.
  • The first (or single) premium is paid from a bank account outside the country.
  • Client accepts very unfavourable conditions unrelated to his or her health or age.
  • Transaction involves use and payment of a performance bond resulting in a cross-border payment.
  • Repeated and unexplained changes in beneficiary.
  • Relationship between the policy holder and the beneficiary is not clearly established.
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