Which option best describes a cash value life insurance policy and its AML relevance?

• A. A cash value life policy that accumulates cash value and can be surrendered or borrowed against; can be used to launder funds if not monitored; monitors for large premium payments and policy loans.
• B. A term policy with fixed premiums and no cash surrender value.
• C. A policy that cannot be borrowed against.
• D. Not relevant to AML.

Answer: (A)