An offshore company is a legal entity that is incorporated or registered in a foreign jurisdiction, usually with low or no taxes, high confidentiality, and minimal regulation1. Offshore companies are often used to hide beneficial ownership, as they can create complex and opaque structures that obscure the identity and control of the real owners and beneficiaries of the assets or transactions involved2. Offshore companies can also use nominee directors and shareholders, trust and company service providers, and shell companies to further conceal beneficial ownership3. According to the web search results, offshore companies are among the most common vehicles for money laundering, tax evasion, corruption, and other illicit activities4 .
References:
* 1: What is an offshore company? - ACAMS
* 2: Guidance on Transparency and Beneficial Ownership - FATF
* 3: Concealment of Beneficial Ownership - FATF-Egmont Group
* 4: What's a Beneficial Owner and Why Does it Matter? - Dun & Bradstreet
* : The Panama Papers: Exposing the Rogue Offshore Finance Industry - ICIJ

Explanation
https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/wolfsbergstandards/10.%20Wolfsberg-Private-
2.4 Senior Management Approval
The bank's internal policies should indicate whether, for any one or more among these categories, Senior Management must approve entering into new relationships.
Relationships with Politically Exposed Persons may only be entered into with the approval of Senior Management.

A free-look provision is a period of time, typically 10 to 30 days, in which a new life insurance policy owner can terminate the policy and have their premium refunded1. This can help criminals to launder money by purchasing a policy with illicit funds and then cancelling it within the free-look period to receive a clean check from the insurance company2. This way, they can disguise the source and origin of their funds and avoid any penalties or charges that would otherwise apply to early termination of the policy.
References:
1: Investopedia, What Is a Free Look Period and How Does It Work?
2: FinCEN, Anti-Money Laundering Program and Suspicious Activity Reporting Requirements for Insurance Companies