CAMS Emerging Trends 4

Question 1

What is 'chain-hopping' in the context of cryptocurrency-based money laundering?

Accepted Answer

Converting funds between different blockchain networks to obscure their trail

Answer

Chain-hopping involves converting assets from one cryptocurrency to another across different blockchains, complicating tracing efforts.

Question 2

Synthetic identity fraud most directly impacts AML programs because it:

Accepted Answer

Creates accounts that pass initial KYC checks using fabricated but plausible identities

Answer

Synthetic identities combine real and fictitious information to create credible personas that evade standard ID verification, allowing illicit accounts to pass KYC.

Question 3

Which technology is being explored to improve AML information sharing between financial institutions while protecting customer privacy?

Accepted Answer

Privacy-preserving computation techniques like federated learning

Answer

Federated learning and similar privacy-preserving techniques allow institutions to train shared AML models without exposing individual customer data.

Question 4

Environmental crime proceeds, such as those from illegal logging or wildlife trafficking, are increasingly laundered through:

Accepted Answer

Cash-intensive legitimate businesses in source countries

Answer

Proceeds from environmental crimes are often integrated through local cash-intensive businesses like restaurants or retail shops in the country where the crime occurred.

Question 5

How are darknet markets relevant to AML compliance programs?

Accepted Answer

They facilitate the sale of illicit goods for cryptocurrency, generating proceeds requiring laundering

Answer

Darknet markets generate cryptocurrency proceeds from drug sales, fraud tools, and other illegal items that must subsequently be laundered into the financial system.

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS - Certified Anti-Money Laundering Specialist Certification Practice Test

CAMS Emerging Trends 4