Question 1

Which term describes converting one cryptoasset into another without first converting to fiat?

Options :

A : Layering

B : Chain hopping

C : Integration

D : Structuring

Answer: B

Question 2

What is indirect exposure in regards to blockchain analytics transaction monitoring?

Options :

A : The cryptoassets are absolutely linked to a specific user and identity on the blockchain.

B : The cryptoassets have a connection to risky activity via another crypto address or addresses.

C : The cryptoassets went through a mixing protocol to conceal source of funds.

D : The fiat currency is not immediately linked to a known bank account.

Answer: B

Question 3

Which risk category best reflects the risks associated with payment methods (e.g., cash, wires, credit cards, virtual assets)?

Options :

A : Geographical

B : Customers

C : New technologies

D : Products and services

Answer: D

Question 4

Which of the following are red flag indicators specifically related to anonymity? (Select Two.)

Options :

A : Use of decentralized or hardware wallets to transport cryptoassets across borders

B : Users utilizing mixing services

C : Use of privacy-orientated email services

D : Use of cryptoassets that are linked to fraudulent schemes

E : Users exhibiting unusual sign-on activity

Answer: A,B

Question 5

Which operational risk mitigation practice by virtual asset service providers (VASPs) is most effective when considering their relationships with other VASPs?

Options :

A : Having no requirement to establish a correspondent relationship and build a risk assessment framework among other cryptoasset exchanges prior to transferring for or on behalf of another person

B : Developing cross-border correspondent relationships with cryptoasset exchanges in jurisdictions that have weak or non-existent anti-money laundering (AML) regulation or supervision

C : Assigning all such relationships as high risk and conducting enhanced due diligence on all of them

D : Gathering sufficient information on the counterpart VASP to determine the quality of the supervision it receives for transactional activities

Answer: D