Question 1

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 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

In cryptoasset compliance, œintegration refers to:

Options :

A : Converting illicit crypto into fiat or legitimate assets.

B : Mixing crypto to hide origins.

C : Transferring crypto between wallets.

D : Staking assets to earn rewards.

Answer: A

Question 5

As per the Financial Action Task Force standards, which activities fall under the definition of a virtual asset service provider? (Select Three.)

Options :

A : Operation of a virtual assets mining facility

B : Exchange between one or more forms of virtual assets

C : Participation in and provision of financial services related to an initial coin offering

D : Exchange between virtual assets and fiat currencies

E : Creation of virtual assets software to issue decentralized managed virtual assets

F : Participation in and provision of financial services related to an initial public offering

Answer: B,C,D