In the Process of Money Laundering the identity of ‘Illegally obtained money’ or ‘tained money’ is changed so that it appears to have originated from a legitimate source . The proceeds of crime is the money generated through actions like drug trafficking,major thefts,fraud,robbert,people trafficking,forgery, counterfeiting , Blackmail,extortion and prostitution .

Finantial institutions such as insurers are therefore placed with a statutory duty to make a disclosure to the authorized officers when suspected proceeds from any illegal means enter their system . Such disclosures are protected by law enabling the person with information to be able to disclose the same without any fear . In order to discharge this responsibility , insurers require a robust AML program which covers :

√ Internal Policies and procedures

√ Monitoring cash Transactions & Benefit Payouts

√ Advisor Processes

√ Recruitment & training of Employees and agents

√ Record Keeping

Subsequent sections in process cover the above points in detail.