ACAMS Virtual Assets and Cryptocurrency AML 2

Question 1

Which of the following is a primary red flag indicator of potential money laundering in cryptocurrency transactions?

Accepted Answer

Multiple small cryptocurrency purchases that aggregate just below reporting thresholds

Answer

Structuring — breaking transactions into amounts just below reporting thresholds — is a classic red flag whether conducted in fiat or cryptocurrency, as it suggests deliberate avoidance of AML controls.

Question 2

What are 'privacy coins' such as Monero (XMR) and Zcash (ZEC), and why are they of heightened concern for AML compliance?

Accepted Answer

Cryptocurrencies that use cryptographic techniques to obscure transaction amounts, sender, and receiver addresses

Answer

Privacy coins use cryptographic methods (e.g., ring signatures, zk-SNARKs) to shield transaction details, making blockchain analytics extremely difficult and raising the risk that illicit funds cannot be traced.

Question 3

In a decentralized exchange (DEX), what is the primary AML compliance challenge compared to a centralized exchange (CEX)?

Accepted Answer

DEXs typically operate without a central operator to collect KYC data or file SARs

Answer

DEXs facilitate peer-to-peer trading via smart contracts without a central intermediary, meaning there is typically no entity responsible for performing KYC, monitoring transactions, or filing suspicious activity reports.

Question 4

What is 'dusting' in the context of cryptocurrency, and how can it relate to AML concerns?

Accepted Answer

Sending microscopic amounts of crypto to multiple wallets to de-anonymize their owners by tracking subsequent transactions

Answer

Dusting attacks involve sending tiny ('dust') amounts of cryptocurrency to many wallets; when recipients move these funds, their wallet clusters can be linked, potentially de-anonymizing them — a tactic sometimes used by investigators or malicious actors.

Question 5

Which approach do blockchain analytics firms (e.g., Chainalysis, Elliptic) primarily use to link cryptocurrency wallet addresses to real-world entities?

Accepted Answer

Clustering wallet addresses based on shared inputs and known exchange deposit patterns

Answer

Blockchain analytics firms cluster wallet addresses using heuristics such as common-input-ownership (wallets spending from the same transaction are likely controlled by the same entity) and tagging known exchange deposit addresses to attribute wallets to real-world entities.

(ACAMS) Association of Certified Anti-Money Laundering Specialists Practice Test

(ACAMS) Association of Certified Anti-Money Laundering Specialists Practice Test

ACAMS Virtual Assets and Cryptocurrency AML 2