Question

When a policyowner cash surrenders a universal life insurance policy in it's early years, this may be considered a red flag for a(n):?

Answer 1

When a policyowner cash surrenders a universal life insurance policy in it's early years, this may be considered a red flag for an Anti-Money Laundering violation. Anti-money laundering known as AML are procedures and regulations that are designed to generate some type of income by doing illegal activity. The money that comes from doing these things is completely real however, it is earned under false pretenses. Money laundering is completely illegal.