Note: The information in this bulletin was communicated earlier this year. It is being redistributed as a reminder of this important training which is now required on an annual basis.

Due to the direct nature of a relationship a producer or a broker has with the customer, insurance companies are required to integrate producers and/or brokers into their anti-money laundering (AML) programs and to provide ongoing training. As a producer or broker appointed with one, or more, AIG member companies, you are required to complete approved AML training on an annual basis.

In an effort to ensure distributors of AIG products receive AML training that meets AIG standards, a review of AML training courses provided by external vendors was conducted. AIG looks for a robust AML training program to include, at a minimum, the following criteria:

Key Concepts

  • Definition of Money Laundering
  • Three Stages of Money Laundering
  • Willful Blindness
  • Terrorist Financing

Agent and/or Broker Responsibilities

  • Understanding Company Programs and Requirements
  • Identifying Red Flags and Reporting Suspicious Activity

Know Your Consumer

  • Agents and/or brokers front line role with Customer
  • Source of funds used to pay for the policy
  • Verifying the customer’s identity

Suspicious Activity Monitoring and Reporting

  • Identifying Red Flags
    • Methods of payment
    • Initial point of sale meetings with customer
    • New business and application activity
    • Ongoing account activity
  • Responsibility to report suspicious activity of customers and potential customers to the insurance company
  • Confidentiality of SARs

Penalties

  • Criminal (for organizations and individual):
    • Fines in dollar amounts or as multiple of the property involved in the transaction – whichever is greater
    • Prison sentences (duration)
  • Civil (for organizations and individuals):
    • Fines in the dollar amounts or the value of funds involved in the transaction – whichever is greater
    • Seizure of any property involved
  • Reputation
    • Damage to the insurance company’s name
    • Damage to the personal/professional reputation

Approved Vendors

Based on the review of external training providers and the expected criteria, the following vendors are considered an approved vendor to provide AML base or refresher training.

Please make sure you take our AML training from one of the approved training providers to ensure your new business will not experience delays due to training concerns:

  • LIMRA
  • RegEd
  • Success CE
  • Fastrack CE

Securities offered through The Leaders Group, Inc. Member FINRA/SIPC 26 W. Dry Creek Circle, Suite 800, Littleton, CO 80120, 303-797-9080.

GBS Insurance and Financial Services, Inc. is not affiliated with The Leaders Group, Inc. You may check the background of investment professionals on FINRA Broker Check

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