INS-TM-008Critical Risk

transaction monitoring

Red Flag

Corporate-owned life insurance (COLI) policy is purchased with company funds but the insured employees are low-level workers with no executive role, and the death benefit is disproportionate to their compensation.

Industry
Insurance Companies
Transaction Type
wire
Customer Type
business entity
Category
transaction monitoring
Regulatory Source
Document:FIN-2008-G001 Insurance Red Flags
Type:FinCEN Guidance
CFR Citation:31 CFR §1025.210
SAR Category:Suspicious activity
FinCEN Key Term:COLI Abuse
Last Verified:2026-04-15
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This red flag is provided for informational and educational purposes only. It is not legal, regulatory, or compliance advice. Always consult the official source document and a qualified compliance professional for guidance specific to your situation.

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