Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

In which situation is a transaction most likely to be flagged as suspicious?

1. A real estate sale paid in stablecoins

2. Five wire transfers totaling US$3 million

3. Ten wire transfers from businesses in the same sector

4. Small amounts sent to a charity organization

The correct answer is: Five wire transfers totaling US$3 million

Transactions are often flagged as suspicious when they exhibit characteristics that do not fit typical patterns associated with legitimate financial behavior. In this context, the situation involving five wire transfers totaling US$3 million stands out due to several factors. Firstly, the sheer volume of the total amount being transferred—in this case, US$3 million—is significant. Large sums of money moving in and out of accounts can raise red flags, especially when multiple transactions are involved within a short timeframe. Financial institutions pay close attention to unusual patterns that deviate from a customer's normal behavior, and this scenario could imply potential money laundering or other illicit activities. Additionally, conducting multiple wire transfers, particularly in quick succession or to various entities, may indicate an attempt to evade scrutiny, also known as "structuring" or "smurfing." This is a tactic used to break down large amounts of money into smaller, less noticeable transactions to bypass detection mechanisms set by financial institutions. Other scenarios presented—such as a real estate sale paid in stablecoins or small amounts sent to a charity—may not arouse immediate suspicion due to their commonality in legitimate transactions or the relatively low risk they pose to anti-money laundering efforts. Furthermore, ten wire transfers from businesses in the same sector could potentially be viewed