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

Which of the following factors is a red flag for a known crypto-related typology?

1. The customer involved is a corporate trading in crypto.

2. Trade involves fiat currency above US$10,000.

3. Traded Bitcoin is associated with ransomware.

4. The customer was onboarded within the last 24 months.

The correct answer is: Traded Bitcoin is associated with ransomware.

The identification of a red flag in the context of known crypto-related typologies is crucial for recognizing potentially illicit activities. Trade involving Bitcoin that is associated with ransomware stands out as a clear red flag because ransomware schemes typically involve demanding cryptocurrency as payment to unlock encrypted data, implicating the transaction in a criminal context. Ransomware attacks are known for their anonymity and difficulty to trace, which makes Bitcoin an attractive medium for these illicit transactions. Therefore, any transaction that links Bitcoin with ransomware should prompt heightened scrutiny and due diligence, as it signifies that the funds may have a criminal origin or purpose. This association directly ties into broader anti-money laundering (AML) and anti-financial crime measures, underscoring the importance of monitoring transactions for connections to such illegal activities. Other options may not immediately indicate suspicious activity. A corporate customer trading in crypto or transactions involving fiat currency above a certain threshold could be perfectly legitimate, as businesses often engage in significant crypto transactions for various well-documented reasons. Additionally, while the onboarding timeframe of a customer could be assessed for risk, it is not inherently a red flag without context about the nature of their transactions.