CCB Financial Crime Prevention 5

Question 1

Which emerging typology uses digital assets to layer illicit funds by rapidly exchanging between multiple cryptocurrencies across decentralized exchanges?

Accepted Answer

Chain-hopping

Answer

Chain-hopping involves converting cryptocurrency from one blockchain to another in rapid succession to obscure the transaction trail.

Question 2

A compliance program that relies solely on automated transaction monitoring without human review is MOST deficient in which area?

Accepted Answer

Contextual analysis and judgment

Answer

Automated systems lack the contextual judgment needed to evaluate complex customer relationships and emerging typologies, requiring human analyst review.

Question 3

Under the Corporate Transparency Act (CTA), which entity type is generally EXEMPT from beneficial ownership reporting requirements to FinCEN?

Accepted Answer

SEC-reporting public companies

Answer

SEC-reporting public companies are among the 23 exempted categories under the CTA because they already disclose ownership information to regulators.

Question 4

Which real estate-related AML requirement requires title insurance companies in certain high-risk areas to identify the natural persons behind shell companies purchasing high-value properties?

Accepted Answer

Geographic Targeting Orders (GTOs)

Answer

FinCEN's Geographic Targeting Orders require title insurance companies in specific US markets to identify beneficial owners of LLCs purchasing residential real estate above certain thresholds.

Question 5

The 'risk-based approach' to AML compliance means that a financial institution should:

Accepted Answer

Allocate more compliance resources to higher-risk customers and activities

Answer

A risk-based approach requires institutions to direct enhanced scrutiny and resources proportionally toward customers, products, and geographies that pose the greatest financial crime risk.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Financial Crime Prevention 5