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

What type of events might trigger an investigation into a virtual asset transaction?

1. Consistent moderate transactions over a lengthy period

2. Large one-off transactions that do not match business patterns

3. Transactions exclusively between recognized entities

4. Deposits occurring at predictable intervals

The correct answer is: Large one-off transactions that do not match business patterns

The scenario that involves large one-off transactions that do not match established business patterns is a key trigger for an investigation into a virtual asset transaction. Such transactions can raise red flags for several reasons. They may indicate potential money laundering activities, fraud, or other forms of financial crime, especially if they deviate significantly from an entity's normal transaction behavior. Regulatory frameworks require financial institutions and cryptoasset service providers to monitor for unusual activities that could signal illicit behavior. When a large transaction occurs without a reasonable explanation or aligns with a known pattern for that entity, it is often scrutinized closely. This is particularly pressing in the context of virtual assets, where anonymity can sometimes obscure the identities and intentions of the parties involved. In contrast, consistent moderate transactions over a lengthy period, predictable deposits, or transactions solely between recognized entities typically indicate normal business behavior, thereby lessening the likelihood of suspicion or an investigation. These scenarios would not generally warrant the same level of scrutiny as an unexpected, large transaction that falls outside of established norms.