Practice Test Geeks(ACAMS) Association of Certified Anti-Money Laundering Specialists Practice Test
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Virtual Assets and Cryptocurrency AML Flashcards

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  1. Under FATF Recommendation 16 (the Travel Rule), what information must Virtual Asset Service Providers (VASPs) transmit alongside virtual asset transfers?

    Answer: Originator and beneficiary name, account/wallet address, and physical address or national ID

    FATF's Travel Rule requires VASPs to collect and transmit originator and beneficiary identifying information (name, wallet address, and physical address or national ID/date of birth) for qualifying transfers, mirroring wire transfer rules for banks.

  2. Which technique involves routing cryptocurrency through multiple wallets or intermediary addresses to obscure the transaction trail?

    Answer: Cryptocurrency mixing or tumbling

    Mixing or tumbling services pool multiple users' cryptocurrency together and redistribute equivalent amounts, breaking the transaction trail and making it difficult to trace the original source of funds.

  3. Which FATF Recommendation was specifically updated in 2019 to extend AML/CFT obligations to Virtual Asset Service Providers (VASPs)?

    Answer: Recommendation 15 (New Technologies)

    FATF Recommendation 15 was updated in 2019 to explicitly include virtual assets and VASPs, requiring countries to regulate, supervise, and apply AML/CFT obligations to these entities.

  4. What is 'chain hopping' in the context of cryptocurrency money laundering?

    Answer: Converting funds from one blockchain network to another to obscure the audit trail

    Chain hopping involves converting cryptocurrency from one blockchain (e.g., Bitcoin) to another (e.g., Monero) to exploit gaps in cross-chain transaction monitoring and disrupt the investigative trail.

  5. A blockchain explorer is most useful in an AML investigation for which purpose?

    Answer: Tracing the flow of funds across publicly visible transaction records

    Blockchain explorers display the publicly recorded transaction history on a given blockchain, allowing investigators to trace fund flows between wallet addresses, though they do not by themselves reveal real-world identities.

  6. Which category of virtual asset is specifically designed to raise proliferation financing risk due to its direct association with sanctioned jurisdictions' attempts to evade restrictions?

    Answer: State-sponsored or government-issued virtual currencies from sanctioned nations

    State-sponsored cryptocurrencies issued by sanctioned nations (e.g., Venezuela's Petro, or North Korea's crypto activities) are specifically flagged as proliferation financing risks as they are designed to circumvent international sanctions.

  7. Under FinCEN guidance, a business that exchanges virtual currency for fiat currency on behalf of customers is generally classified as which type of regulated entity?

    Answer: A money services business (MSB) subject to Bank Secrecy Act requirements

    FinCEN guidance (2013 and subsequent) classifies virtual currency exchangers and administrators as money services businesses (MSBs) under the Bank Secrecy Act, requiring them to register, maintain AML programs, and file SARs and CTRs.