Acams CCAS Exam Dumps

This process is layering, designed to hide the source of funds through multiple new wallets before integration into the financial system.

Private blockchains are controlled by a single organization with full access restrictions. This model is often used for internal record-keeping but lacks the decentralized trust of public chains.

Ransomware schemes are categorized as cyber-enabled financial crimes. AML/CFT frameworks require that such risks be assessed and mitigated through blockchain analytics, sanctions screening, and transaction monitoring for known ransomware wallet addresses.

FATF Recommendation 13 (Correspondent Banking and Similar Relationships) and its application to VASP--VASP relationships require enhanced due diligence before onboarding. This is because such arrangements carry elevated ML/TF risk, especially in cross-border settings.

Required CDD practices include:

Assess the nature and purpose of the VASP relationship (C): Understand why the relationship is being established and the expected services/products.

Obtain approval from senior management (D): Senior management oversight ensures risk is accepted at the appropriate governance level.

Assess the VASP's supervision and if a license/registration is needed (E): Confirm regulatory oversight, licensing, and compliance with AML/CFT obligations.

Options A and B are not core FATF requirements for CDD in this context --- local authority approval may be a domestic regulatory requirement in some countries, but not a FATF baseline, and profitability assessment is a business decision, not an AML measure.

FATF defines VASPs as entities that conduct one or more of the following activities:

Exchanging one or more forms of virtual assets (B),

Providing financial services related to initial coin offerings (ICOs) (C),

Exchanging virtual assets for fiat currencies or vice versa (D).

Mining operations (A) and software creation (E) are excluded from the VASP definition as they do not involve financial intermediation. Initial public offerings (IPOs) (F) pertain to traditional securities and are outside the scope of VASP activities.

This definition aligns with FATF Recommendation 15 and DFSA regulatory frameworks.