1. Use group life insurance to launder money. Group life insurance is the main tool for legal persons to use insurance to launder money. International organizations such as FATF and IAIS are very concerned about it, and domestic scholars have done a lot of analysis and research. However, money laundering is often associated with bribery, tax evasion, tax avoidance, and violation of financial disciplines.

are confused and need to be clarified.

The author believes that according to the different purposes of using group insurance, group insurance money laundering can be divided into the following four types. Only the first two are money laundering because they exceed the salary limit of the state (i.e., the state-owned enterprise shareholders or the agents of the collective enterprise shareholders); the latter are money laundering;

The two types of behaviors should be within the national salary limit and should be classified as behaviors encouraged by the state, tax avoidance, tax evasion and violations of financial disciplines.

The first type is money laundering where a few business leaders or all employees privately divide state-owned or collective assets.

The former does not let employees know, and the latter lets employees know and indirectly obtains their consent. However, both are embezzlement of state-owned assets through insurance. They combine corruption and money laundering into one, and both must prevent shareholders from knowing.

In the first category, insurance companies spread huge premiums to employees and purchase group insurance in the name of the company, but usually only a few people in charge know about it.

After the policy comes into effect, the insured company "takes long-term risk but short-term policy" and requires the policy to be surrendered. The insurance company will remit the refunded premium to the personal account of the company leader.

After the China Insurance Regulatory Commission strengthened its supervision of group insurance surrenders, another step has been added, namely, "group insurance is done individually."

After the policy came into effect, the insured company requested to change the group insurance to individual insurance on the grounds of "inability to pay", and then requested to surrender the policy, and the premiums went into the personal account of the leader.

In the second category, the enterprise first purchases group insurance for all employees in the name of the unit, then surrenders the insurance, and the refunded premiums are deposited into the employees' personal accounts, which they can withdraw by themselves.

According to the provisions of the Anti-Money Laundering Law, these two categories are money laundering behaviors whose predicate crime is "corruption and bribery crime".

However, the former is corruption by a few leaders, while the latter is collective corruption.

The second type is for companies to purchase personal insurance for their employees in the form of "group purchase", that is, "individual insurance group purchase".

The consent of employees is often obtained indirectly through the method of "employees contribute a small amount and the company contributes a large amount".

The company collects the personal information of employees and the insurance forms they fill out, then "withholds" the premiums that should be paid by employees, and finally purchases individual insurance for employees through "group purchasing."

This method of "group purchasing" personal insurance for employees not only obtains the consent of the employees, but also circumvents the supervision of the China Insurance Regulatory Commission.

Although the leader may get the big head and the employees can only get the small head, the possibility of internal strife is very small.

As long as it exceeds the country's salary limit, it should be regarded as money laundering behavior of embezzling state-owned assets.

The third type is the purchase of corporate annuities, tax avoidance or tax evasion.

The first category is to purchase a corporate annuity.

In order to improve the pension insurance system, the state encourages qualified enterprises to purchase supplementary commercial pension insurance for their employees after participating in the basic pension insurance. The portion of the premium within 4% of the total salary of employees shall be included in the cost and disbursed before tax.

Obviously, as long as the premium paid by the company is within 4%, it is not only legal, but also tax-free and encouraged by the state.

The state does not object to the amount exceeding 4% as long as it is after-tax income.

The second category is tax avoidance.

Although the premium paid by the enterprise for its employees exceeds 4%, it should be regarded as tax avoidance if it can make the excess part tax-free.

The third category is tax evasion.

The company purchases group life insurance for its employees, and then requires the group life insurance to be changed to a new one, and the individual employees either surrender the policy or hold the policy.

If an enterprise pays more than 4% in premiums and cannot make the excess tax-free, but fails to fulfill its tax obligations, it should be considered tax evasion.

If among these three categories, employee wages, including premiums, exceed the national salary limit, it should be considered a money laundering act of embezzling state-owned assets.

The fourth type is to set up a private treasury.

Enterprises purchase group insurance in the name of the company and then cash out the insurance through surrender.

The refunded premiums are deposited into the designated account, and the company sets it up as a "small treasury" to meet some special needs while evading the supervision of the fiscal and taxation departments.

Although this practice violates financial discipline, it only changes the possession form of the property and does not change the ownership relationship, so it does not fall into the category of money laundering.

2. Use of underground insurance policies to launder money. Underground insurance policies refer to salespeople from Hong Kong and Macao insurance institutions entering the mainland to sell to mainland residents, or mainland residents helping them to sell them, or even Hong Kong and Macao insurance institutions and their agents selling to mainland residents through the Internet, telephone, etc.

The premium payment is completed in China, and then the above-mentioned personnel transfer the premium to an overseas insurance institution, and finally the policy is issued overseas by the overseas insurance institution.

It can be seen that as long as the insurance policyholder's premium payment process is completed in the mainland, the policies issued by overseas insurance institutions are underground policies.

Underground insurance policies are mostly paid in RMB and surrendered or claimed in foreign currencies. It provides a convenient channel for black money to leave the country and has become an important money laundering tool.

3. Use long-term life insurance to launder money, that is, "long-term insurance and short-term insurance". Money launderers usually use large amounts of cash to pay premiums in bulk, or complete regular payment in a short period of time, or initially choose regular payment, and soon require single payment of subsequent premiums.

In the short term, policyholders will allow the cash value of the policy to reach a very high level, then demand surrender or mortgage loans and allow the policy to be written off.

"Single payment and immediate payment" is a variation of "long-term insurance and short-term insurance".

Money launderers often insure people who are about to retire, or "misrepresent" the age of the insured as being close to retirement age, and purchase pension insurance or immediate annuities by paying single premiums.

Because the way of receiving annuities is more flexible, money launderers can use this type of insurance to deposit a large amount of cash and receive all the insurance money at once.