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

If a deposit of 0.5 Bitcoin from a low-risk customer generates a dark net alert, what should the analyst do next?

1. Immediately file a SAR for money laundering due to an indirect dark net connection.

2. Record the outcome of the investigation as a tainted coin, but increase the risk rating of the customer for closer monitoring.

3. Inform the customer that further coins from the source cannot be deposited, otherwise a SAR will be filed.

4. Escalate the transaction to leadership and freeze the customer's assets.

The correct answer is: Record the outcome of the investigation as a tainted coin, but increase the risk rating of the customer for closer monitoring.

The correct response involves recording the outcome of the investigation as a tainted coin while also increasing the risk rating of the customer for closer monitoring. When a transaction stemming from a low-risk customer generates a dark net alert, it indicates potential exposure to illicit activities, despite the customer’s previously established low-risk profile. By classifying the Bitcoin involved as a tainted coin, the analyst acknowledges that the specific asset may be connected to unlawful activities, such as money laundering or financing of illegal operations, as associated with dark net markets. This labeling enables the institution to have a clear record of the asset's status and the associated risks. Simultaneously increasing the customer's risk rating is a proactive measure. It signifies the need for enhanced scrutiny on future transactions until there is more clarity about the nature of the current situation. Ongoing monitoring could prevent potential abuse of the banking system and ensure compliance with anti-money laundering regulations. This integrated approach not only adheres to compliance protocols but also emphasizes the significance of customer due diligence in the evolving landscape of cryptocurrency transactions. The other options provided do not take a balanced approach to risk management and regulatory requirements. For instance, immediately filing a Suspicious Activity Report (SAR) may be premature without a thorough investigation or understanding of