Question 1

What is indirect exposure in regards to blockchain analytics transaction monitoring?

Options :

A : The cryptoassets are absolutely linked to a specific user and identity on the blockchain.

B : The cryptoassets have a connection to risky activity via another crypto address or addresses.

C : The cryptoassets went through a mixing protocol to conceal source of funds.

D : The fiat currency is not immediately linked to a known bank account.

Answer: B

Question 2

In the context of forensic cryptocurrency investigations, which statement best describes how attribution data are collected?

Options :

A : Taken from business-maintained records.

B : Derived from public and non-public sources.

C : Gathered from a publicly available blockchain.

D : Obtained automatically from the darknet.

Answer: B

Question 3

What is the intention of the Financial Action Task Force's (FATF's) Travel Rule?

Options :

A : To enhance customer due diligence (CDD) procedures to ensure high quality data

B : To slow down cryptoasset transactions to allow law enforcement to intervene

C : To mitigate money laundering and terrorist financing (ML/TF) risk by increasing the ability to follow funds via different financial institutions

Answer: C

Question 4

In cryptoasset compliance, œintegration refers to:

Options :

A : Converting illicit crypto into fiat or legitimate assets.

B : Mixing crypto to hide origins.

C : Transferring crypto between wallets.

D : Staking assets to earn rewards.

Answer: A

Question 5

Which operational risk mitigation practice by virtual asset service providers (VASPs) is most effective when considering their relationships with other VASPs?

Options :

A : Having no requirement to establish a correspondent relationship and build a risk assessment framework among other cryptoasset exchanges prior to transferring for or on behalf of another person

B : Developing cross-border correspondent relationships with cryptoasset exchanges in jurisdictions that have weak or non-existent anti-money laundering (AML) regulation or supervision

C : Assigning all such relationships as high risk and conducting enhanced due diligence on all of them

D : Gathering sufficient information on the counterpart VASP to determine the quality of the supervision it receives for transactional activities

Answer: D

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