ACAMS Virtual Assets and Cryptocurrency AML

Question 1

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

Accepted Answer

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

Answer

Only the transaction hash and wallet addresses

Answer

The USD equivalent value and the date of the transaction

Answer

The VASP's license number and jurisdiction of registration

Question 2

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

Accepted Answer

Cryptocurrency mixing or tumbling

Answer

Layering via blockchain fragmentation

Answer

Smurfing across exchanges

Answer

Chain hopping between networks

Question 3

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

Accepted Answer

Recommendation 15 (New Technologies)

Answer

Recommendation 10 (Customer Due Diligence)

Answer

Recommendation 14 (Money or Value Transfer Services)

Answer

Recommendation 26 (Regulation of Financial Institutions)

Question 4

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

Accepted Answer

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

Answer

Repeatedly buying and selling the same cryptocurrency on one exchange

Answer

Using multiple custodial wallets at the same VASP

Answer

Splitting a large cryptocurrency transaction into smaller ones on the same chain

Question 5

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

Accepted Answer

Tracing the flow of funds across publicly visible transaction records

Answer

Automatically freezing suspicious wallets

Answer

Filing Suspicious Activity Reports with FinCEN

Answer

Determining the legal identity of a wallet owner

Question 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?

Accepted Answer

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

Answer

Stablecoins pegged to major fiat currencies

Answer

Utility tokens used for software platform access

Answer

Non-fungible tokens (NFTs) on public blockchains

Question 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?

Accepted Answer

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

Answer

A broker-dealer subject to SEC oversight

Answer

A non-bank financial institution exempt from AML requirements

Answer

A commodity pool operator regulated by the CFTC