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.
Read the first 7 Emerging Trends flashcards as text
Which emerging payment method poses AML risk due to its use of 'mixers' or 'tumblers' to obscure transaction trails?
Answer: Cryptocurrency
Cryptocurrency mixers/tumblers pool and redistribute coins to break the blockchain transaction trail, making it a key AML concern.
What is 'smurfing' in the context of emerging AML trends involving digital payments?
Answer: Structuring large transactions into many small ones below reporting thresholds
Smurfing (structuring) involves breaking large sums into smaller deposits to evade Currency Transaction Report thresholds.
Decentralized Finance (DeFi) platforms present a unique AML challenge primarily because they:
Answer: Often lack a central intermediary to apply KYC/AML controls
DeFi protocols operate via smart contracts without a central entity, making it difficult to enforce traditional KYC/AML requirements.
Which FATF recommendation was updated to specifically address virtual asset service providers (VASPs)?
Answer: Recommendation 15
FATF Recommendation 15 was updated to bring VASPs under AML/CFT obligations equivalent to those applied to financial institutions.
The 'Travel Rule' as applied to virtual assets requires that:
Answer: VASPs pass originator and beneficiary information with transfers above a threshold
The FATF Travel Rule requires VASPs to collect and transmit originator and beneficiary information for virtual asset transfers at or above $1,000/€1,000.
Non-Fungible Tokens (NFTs) raise AML concerns primarily because they can be used to:
Answer: Facilitate trade-based money laundering through subjective valuation
NFTs can be bought and sold at manipulated prices, allowing bad actors to transfer illicit value under the guise of art or collectible transactions.
Which typology involves criminals using online gaming platforms to launder money by purchasing in-game currency or assets?
Answer: Virtual economy laundering
Criminals convert illicit cash into in-game assets, trade or sell them within the game economy, and then cash out through legitimate channels.