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

When evaluating whether to terminate a business relationship with a customer, which two aspects of their risk profile should be considered?

1. Peer groups' similarities of virtual assets

2. Jurisdiction of the customer's assets

3. Customer characteristics based on trading activity

4. Virtual assets channels evaluating the source of VAs

The correct answer is: Customer characteristics based on trading activity

Considering customer characteristics based on trading activity is crucial when evaluating whether to terminate a business relationship. This aspect helps identify patterns, behaviors, and trends associated with the customer’s trading habits, which can indicate potential risks related to money laundering, fraud, or other financial crimes. For example, unusual trading volumes, rapid transactions, or inconsistent trading patterns can signal suspicious activities warranting a closer look. By understanding how a customer engages with virtual assets, institutions can better assess the associated risk levels. This evaluation serves as a foundation for determining whether the relationship presents a continued threat to compliance protocols and overall operational integrity. The other aspects may not provide as comprehensive a view of the risks tied to the specific customer's behavior. While the jurisdiction of the customer's assets and the evaluation of the source of virtual assets are relevant factors in a broader risk context, they do not directly reflect the customer's individual or unique trading characteristics, which are essential for making informed decisions about the relationship.