Money laundering prevention: the challenge of insurance termination for outlaw biker gangs’ club houses

Abstract

Purpose

The purpose of this paper is to discuss the legal barriers to termination of an insurance arrangement where there is suspicion of money laundering when paying insurance premiums.

Design/methodology/approach

Trials in court between insurance firm and outlaw biker gangs regarding insurance of their clubhouses.

Findings

Protection of insured seems more important than prevention of money laundering.

Research limitations/implications

This is a case study that cannot be generalized.

Practical implications

Anti money laundering is difficult when competing with other considerations.

Social implications

Accusations of money laundering is not sufficient to terminate an insurance contract. Rather, solid evidence is needed.

Originality/value

This is a real case of failing anti-money laundering efforts.

Citation

Gottschalk, P. (2024), "Money laundering prevention: the challenge of insurance termination for outlaw biker gangs’ club houses", Journal of Money Laundering Control, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JMLC-01-2024-0003