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Emerging Trends Flashcards

7 cards from real CAMS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What is the primary AML concern with peer-to-peer (P2P) cryptocurrency exchanges compared to centralized exchanges?

    Answer: P2P platforms often lack robust KYC verification of users

    P2P exchanges frequently allow users to trade directly without identity verification, creating gaps in AML oversight.

  2. Regultech solutions in AML compliance primarily leverage which technology to reduce false positives in transaction monitoring?

    Answer: Machine learning and artificial intelligence

    AI/ML-based RegTech tools analyze behavioral patterns and context to distinguish suspicious activity from legitimate transactions more accurately.

  3. Which emerging threat involves criminals using social media platforms and influencers to recruit unwitting 'money mules'?

    Answer: Money mule social engineering

    Criminals post fake job offers on social media promising easy income, recruiting individuals who unknowingly transfer illicit funds through their accounts.

  4. How does 'layering' manifest in the context of cryptocurrency transactions?

    Answer: Moving funds through multiple wallets, chains, and mixing services to obscure origin

    Layering in crypto involves chain-hopping, using privacy coins, and mixers to create complex transaction trails that are difficult to trace.

  5. The concept of 'de-risking' by financial institutions refers to:

    Answer: Terminating relationships with entire customer categories deemed high risk

    De-risking occurs when banks exit entire markets or customer segments (e.g., MSBs, correspondent banks) rather than managing individual customer risks.

  6. Which emerging trend involves criminals exploiting the speed of instant payment systems to move funds before detection?

    Answer: Real-time payment layering

    Instant payment rails like Zelle or FedNow allow nearly immediate fund movement, reducing the window for financial institutions to detect and intervene.

  7. Which geographic region has been identified by FATF as increasingly used as a conduit for laundering proceeds through trade-based methods?

    Answer: Free trade zones with lax oversight globally

    Free trade zones worldwide often have reduced customs and financial oversight, making them attractive for trade-based money laundering schemes.