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

Which of the following enhances the money laundering risk profile of a transaction?

1. The transaction is for an established customer.

2. The transaction involves cryptocurrency from a regulated source.

3. The transaction follows a normal business pattern.

4. The transaction is the first with an unfamiliar entity.

The correct answer is: The transaction is the first with an unfamiliar entity.

The selection highlights that a transaction being the first with an unfamiliar entity significantly enhances the money laundering risk profile. When a transaction involves an unfamiliar entity, there is often less information available to assess the legitimacy of the transaction and the intent behind it. This lack of familiarity can lead to a higher potential for illicit activities, such as money laundering, as the parties involved may not have established trust or an ongoing relationship that provides reassurance about the transaction’s legitimacy. In contrast, transactions with established customers or those involving cryptocurrency from regulated sources typically present a lower risk profile. Established customers have a history that can provide insights into their behaviors and business practices, enabling better risk assessment. Similarly, cryptocurrency from regulated sources often has built-in anti-money laundering (AML) measures, reducing the chances of illicit activity. Transactions that conform to normal business patterns further support the case for legitimacy, as they align with expected behaviors in a given industry. Thus, transactions with unfamiliar entities represent a red flag due to the increased uncertainty surrounding the transaction, making this factor a significant enhancement to the money laundering risk profile.