C4 Study Guide 2026
Everything you need to pass the C4 exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 C4 Exam Format at a Glance
📚 C4 Topics to Study (37)
✍️ Sample C4 Questions & Answers
1. A VASP must conduct Enhanced Due Diligence (EDD) on a customer. Which scenario most clearly triggers this requirement?
Politically Exposed Persons (PEPs) pose higher corruption and bribery risks, triggering mandatory Enhanced Due Diligence under AML regulations worldwide.
2. What is 'slippage' in cryptocurrency trading and which risk category does it fall under?
Slippage is the difference between the anticipated price and the actual execution price, caused by low liquidity or rapid price movement, and is classified as market risk.
3. What is 'message framing' in the context of cryptocurrency stakeholder communication?
Message framing involves choosing the context, emphasis, and language that shapes stakeholder interpretation and emotional response to information.
4. A crypto wallet provider collects more user data than necessary for service delivery. This practice raises concerns under which ethical principle?
Collecting excessive personal data violates data minimization principles embedded in privacy frameworks like GDPR and ethical standards for crypto professionals.
5. In the context of crypto compliance, what is 'chain-hopping' and why does it complicate AML investigations?
Chain-hopping involves converting assets across different blockchains (often via cross-chain bridges or atomic swaps) to break the traceable link between source and destination funds.
6. Which global organization develops standards to combat money laundering in crypto?
The Financial Action Task Force (FATF) issues guidelines to help countries combat money laundering and terrorist financing involving cryptocurrencies.