Which of the following does not describe a high-risk account?

• A. An account opened with large, unusual deposits
• B. An account opened with $50 and little anticipated activity
• C. An account showing rapid movement of funds
• D. An account held by a shell company

Answer: (B)

High-risk accounts in AML for insurance are identified by patterns that suggest money laundering or concealment of illicit proceeds. Large, unusual deposits stand out as a red flag because they may indicate attempts to introduce illicit funds into the system or to structure deposits to evade reporting. Rapid movement of funds signals layering, a common laundering technique to obscure the money’s origin by quickly transferring through multiple accounts. An account held by a shell company also raises concern because it can mask true ownership and facilitate hidden transactions. An account opened with a small amount like $50 and little anticipated activity does not exhibit these warning patterns, making it the best candidate for not being a high-risk account.