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

What should compliance officers include in their risk assessment for virtual asset transfers?

1. Geographical risks.

2. Customer demographics.

3. Transaction history length.

4. Preferred trading pairs.

The correct answer is: Geographical risks.

Including geographical risks in a risk assessment for virtual asset transfers is vital due to the differing regulatory environments and crime susceptibility across various regions. Geographical risks help compliance officers identify areas that may pose higher threats for money laundering, fraud, or other illicit activities related to virtual assets. Certain jurisdictions may have lax regulations, increased cybercrime rates, or historical data reflecting higher instances of financial crime, which can all influence the risk level associated with transactions originating from or sent to those locations. In this context, while customer demographics, transaction history length, and preferred trading pairs also have their importance in assessing overall risk, they do not capture the broader implications and regulatory challenges associated with geographical factors, which play a central role in effective compliance strategies in the ever-evolving landscape of virtual assets.