CAMS Emerging Trends 2

Question 1

Which emerging payment method poses AML risk due to its use of 'mixers' or 'tumblers' to obscure transaction trails?

Accepted Answer

Cryptocurrency

Answer

Cryptocurrency mixers/tumblers pool and redistribute coins to break the blockchain transaction trail, making it a key AML concern.

Question 2

What is 'smurfing' in the context of emerging AML trends involving digital payments?

Accepted Answer

Structuring large transactions into many small ones below reporting thresholds

Answer

Smurfing (structuring) involves breaking large sums into smaller deposits to evade Currency Transaction Report thresholds.

Question 3

Decentralized Finance (DeFi) platforms present a unique AML challenge primarily because they:

Accepted Answer

Often lack a central intermediary to apply KYC/AML controls

Answer

DeFi protocols operate via smart contracts without a central entity, making it difficult to enforce traditional KYC/AML requirements.

Question 4

Which FATF recommendation was updated to specifically address virtual asset service providers (VASPs)?

Accepted Answer

Recommendation 15

Answer

FATF Recommendation 15 was updated to bring VASPs under AML/CFT obligations equivalent to those applied to financial institutions.

Question 5

The 'Travel Rule' as applied to virtual assets requires that:

Accepted Answer

VASPs pass originator and beneficiary information with transfers above a threshold

Answer

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.

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS Emerging Trends 2