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

What common indicator suggests a high money laundering risk in a cryptocurrency transaction?

1. Funds are transferred from a long-term customer.

2. Frequent large-value transfers into a single account.

3. Transfers that immediately withdraw deposits.

4. Transactions to a familiar vendor.

The correct answer is: Frequent large-value transfers into a single account.

A frequent indicator of high money laundering risk in cryptocurrency transactions is frequent large-value transfers into a single account. This activity raises a red flag because it can signify that the account is being used for the purpose of aggregating large sums of money that could be illicitly obtained. Money launderers often strive to consolidate and obscure the origins of their funds, and large-value transfers are a common tactic to achieve this. In this context, the movement of substantial amounts of money into one account may suggest that the account is being exploited for laundering purposes, as it deviates from normal transaction behaviors typically seen within a legitimate account. This type of transaction pattern often indicates a higher likelihood of the account being utilized for illicit activities. While other options may show certain risks, they do not inherently signify the same level of concern associated with large, frequent transfers into a sole account, as they might still align with standard operational practices for legitimate businesses or customers.