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

Why do criminals divide their total profits into smaller parts?

1. To match the cash-reporting threshold

2. To avoid the generation of an alert

3. To allow them to withdraw cash from different banks later

4. To avoid KYC verification

The correct answer is: To avoid the generation of an alert

Criminals often divide their total profits into smaller parts primarily to avoid triggering alerts that could arise from large transactions. Financial institutions typically have monitoring systems in place that flag unusually large transactions, which might indicate suspicious activity or money laundering. By breaking down the funds into smaller amounts, criminals can execute multiple transactions that remain below the thresholds that trigger these alerts. This tactic helps them operate more discreetly and avoid drawing the attention of law enforcement or regulatory bodies. While other options may seem plausible—such as cash-reporting thresholds or KYC verification—the primary objective of dividing profits is to evade the scrutiny associated with large transactions. By keeping transactions small, criminals reduce the likelihood of detection, thereby enhancing their ability to move illicit funds without facing significant hurdles.