Life policies – case study 6

A couple in their twenties purchased several single premium life insurance contracts with the same insurance company. A little later they requested an early repayment of these policies in cash. This, combined with the young age of the insured, attracted the attention of the insurance company. The FIU found that both policyholders had convictions and were the subjects of a drug investigation. The file was referred to the criminal court.

Life policies – case study 7

A policyholder living abroad bought a life insurance policy and, soon afterwards, requested early surrender of the policy. This early surrender resulted in high costs for the policyholder. Afterwards, the policyholder made a request by fax to transfer the money to an account of another person living abroad. The insurer contacted the FIU, which, in light of the urgency of the situation, requested that the transaction should be postponed for 24 hours. This gave the FIU time to collect data, which indicated that the policyholder had been convicted for illegal public attraction of savings. The case has been transferred to the justice department for further investigation.

Life policies – case study 8

Two life insurance policies were bought for a large amount in the names of Mr X and Mr Y. The payments were made by cheque, originating from the account of a European investment company. Both polices were used as security for a mortgage loan with a company that specialised in leasing. As the beneficiaries were not the policyholders and in light of the unusual financing being provided by a leasing company, the insurer contacted the investment company in order to understand the origin of the money that had been deposited in the account. It appeared that the money was deposited with the company in cash by random clients. Following the disclosure of suspicion by the insurance company it became evident that Mr X and Mr Y were known by the customs authorities for the illegal importation and exportation of cars.

Life policies – case study 9

A 34 year old car dealer received a loan through a broker of a life insurance company to purchase a house. He invested around 25% of the loan in a single-premium life insurance policy. He later surrendered the policy early to pay back the loan (capital and interest), making up the shortfall through other funds. The use of a substantial proportion of the loan to purchase a policy combined with the unexpectedly early repayment of the loan led to the FIU being contacted. The FIU’s investigation revealed that the policyholder was known for stealing and receiving stolen cars. Moreover, he had used false documents to prove the sources of his income and wealth.

Life policies – case study 10

A life insurance company was contacted by a financial adviser calling on behalf of a customer who had taken out a policy. The customer had recently been convicted of fraud and wished to ascertain whether such a conviction would compromise the policy’s terms and conditions. The conviction did not pose a problem for the continuation of the policy. However the disclosure of fraud prompted an internal review. Active investment policies were identified and a media article was found, which stated that the customer had been part of a gang involved in a €6 million tax fraud and subsequent money laundering offences. A suspicious activity report was submitted to the FIU. Following dissemination of the intelligence by the FIU, the tax authority advised the insurance company that its report provided useful information, allowing a case for confiscation of assets to be made.

Copies of the paper are available. http://www.iaisweb.org/view/element_href.cfm?src=1/20141.pdf