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

What illicit activity is indicated by larger-than-normal virtual asset deposits with an unknown source of funds?

1. Regulatory arbitrage

2. Kickback payments

3. Ransomware payment

4. Money laundering

The correct answer is: Money laundering

Larger-than-normal virtual asset deposits with an unknown source of funds are strong indicators of money laundering activities. Money laundering typically involves the process of taking illegally obtained funds and disguising their original source to make them appear legitimate. When there are significant deposits from unknown origins, it suggests that the funds have not gone through conventional, transparent channels, raising suspicions about their legitimacy. In this context, the deposits could potentially represent illicit gains from various criminal enterprises. Money laundering techniques often rely on layering transactions through digital assets, making it difficult to trace the origins of the funds. This situation can alert compliance officers and investigators to explore the source of the deposits further, as it could signify an attempt to cleanse illicit proceeds. Other options like regulatory arbitrage, kickback payments, and ransomware payments may involve illicit activities, but they do not specifically address the scenario of unaccounted-for typical deposits as straightforwardly as money laundering does.