What factor does NOT significantly contribute to money laundering in the insurance industry?

The presence of a central regulatory body does not significantly contribute to money laundering in the insurance industry because it generally serves to enhance oversight and compliance. Regulatory bodies establish frameworks that require insurance companies to implement anti-money laundering (AML) policies, conduct due diligence on clients, and report suspicious activities. This oversight helps to deter and detect potential money laundering activities, making it more difficult for illicit actors to exploit the insurance sector.

In contrast, reliance on agents, lack of direct client contact, and variability of state regulations can create vulnerabilities. Agents might facilitate transactions without adequate scrutiny, while a lack of direct interaction with clients can diminish opportunities for thorough verification. Additionally, differing state regulations can lead to inconsistencies in compliance measures, making it easier for money launderers to exploit weaker regulatory environments. Thus, the presence of a central regulatory body is an important factor in minimizing the risks associated with money laundering.