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

What two pieces of information should be collected when performing due diligence on a virtual asset service provider (VASP)?

1. Copies of VASP's AML training records

2. Evidence of the sufficiency of the VASP's AML compliance framework

3. The latest external audit report of the VASP

4. Evidence that the VASP does not work with suppliers from high-risk countries

The correct answer is: Evidence of the sufficiency of the VASP's AML compliance framework

When performing due diligence on a virtual asset service provider (VASP), it is crucial to collect evidence of the sufficiency of the VASP's Anti-Money Laundering (AML) compliance framework. This piece of information is essential because it provides insight into how well the VASP has structured its policies, procedures, and controls to prevent and mitigate risks associated with money laundering and other financial crimes. A robust AML compliance framework demonstrates that the VASP has taken proactive steps to identify, assess, and address potential vulnerabilities in its operations. This includes a thorough risk assessment, effective customer due diligence, transaction monitoring, reporting mechanisms, and employee training programs designed to ensure compliance with applicable laws and regulations. While other pieces of information, such as training records and audit reports, can contribute to understanding a VASP's overall compliance environment, the sufficiency of the AML compliance framework is a foundational indicator of how effectively the institution can manage risks associated with financial crime. Collecting this evidence enables a comprehensive assessment of the VASP’s readiness to counter illicit activities, thereby strengthening the due diligence process.