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

Which virtual asset related transaction could be a red flag?

1. Opening multiple accounts with a common IP address

2. Moving virtual assets to a centralized exchange followed by trading for privacy coins

3. Making multiple high-value transactions within a short period

4. Using mixing and tumbling services to obscure the flow of funds

The correct answer is: Making multiple high-value transactions within a short period

The identification of a red flag in virtual asset transactions is crucial for anti-crime measures. Making multiple high-value transactions within a short period can indicate unusual behavior, particularly if these transactions do not align with the customer's typical activity. This rapid pattern may suggest attempts to evade detection, indicate structuring to circumvent reporting thresholds, or reflect other potential illicit activities, such as money laundering. In the context of anti-crime strategies, frequent high-value transactions can denote potential abuse of the financial system, hence drawing the attention of compliance officers and regulatory bodies. Monitoring these patterns helps organizations identify risk and take appropriate compliance measures. While other options also indicate potential red flags, the frequency and volume of high-value transactions make option C particularly concerning, as it directly relates to possible attempts to manipulate or misuse the financial system.