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

Which two examples demonstrate compliance with the travel rule by a virtual asset service provider?

1. The recipient entity obtains information on the originator.

2. Beneficiary information is submitted in a virtual asset transfer.

3. National identifier numbers of both originator and beneficiary are submitted.

4. All virtual asset transfers are monitored to determine suspicious activity.

The correct answer is: The recipient entity obtains information on the originator.

Compliance with the travel rule in the context of virtual asset service providers (VASPs) is centered around the requirement to collect and transmit specific information about the originator and beneficiary involved in virtual asset transfers. The first example illustrates one aspect of this compliance by indicating that the recipient entity obtains information on the originator. This is a crucial step in adhering to the travel rule because it involves ensuring that the necessary details about the person sending the funds are captured and shared appropriately during the transaction process. Obtaining such information is essential for enabling traceability and facilitating the oversight of transactions, which play a significant role in preventing money laundering and enhancing the integrity of the financial system. Although the other examples touch on related compliance aspects, they may not fully encapsulate the core requirements of the travel rule. For instance, while the submission of beneficiary information is certainly important, it does not highlight the requirement regarding the originator in the same direct manner as obtaining information about them. Meanwhile, the inclusion of national identifier numbers is beneficial but can be seen as an additional requirement rather than reflecting core compliance with the travel rule. Monitoring all virtual asset transfers for suspicious activity is also a best practice but extends beyond the specific focus of the travel rule, which primarily deals with the information exchange