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

What improvement would be expected from a supervisory authority analyzing a VASP's AML policies?

1. Allow transfers to or from unhosted wallets if they are blacklisted

2. Use an infrastructure standards compliance certificate

3. Screen wallet addresses against blacklisted addresses

4. Not verify customer information unless suspicion arises

The correct answer is: Screen wallet addresses against blacklisted addresses

The choice to screen wallet addresses against blacklisted addresses directly aligns with the fundamental goals of anti-money laundering (AML) efforts. By implementing this practice, a Virtual Asset Service Provider (VASP) can effectively monitor transactions and identify potential risks related to illicit activities. This proactive approach ensures that any connections to known bad actors or suspicious entities are flagged, allowing for timely action to mitigate associated risks. In the context of AML policies, screening wallet addresses is a critical aspect of due diligence. It helps in maintaining compliance with regulatory requirements and enhances the overall integrity of the financial system. By actively checking addresses against blacklists, a supervisory authority can expect to see a tangible improvement in a VASP's ability to detect and prevent money laundering and other financial crimes. Other options do not provide the same level of compliance or proactive risk management. Allowing transfers to or from unhosted wallets that are blacklisted could facilitate illicit activities rather than prevent them. Using an infrastructure standards compliance certificate focuses more on technical aspects and does not specifically address AML procedures. Lastly, not verifying customer information unless suspicion arises undermines the very purpose of AML practices, as it poses considerable risks by allowing potentially fraudulent entities to operate without scrutiny.