CAMS Question #437: Real Exam Question with Answer & Explanation

The correct answer is A. Using self-hosted wallets to create many different donation addresses that are updated. Using self-hosted wallets, or wallets that are stored on the user's computer, is one of the tactics that may be used to finance terrorism with virtual assets such as Bitcoin. By creating many different donation addresses that are updated continuously, law enforcement will have a

Question

When using virtual assets such as Bitcoin to finance terrorism, which tactic may be used to ensure that the virtual assets are not easily seized by law enforcement?

Options

AUsing self-hosted wallets to create many different donation addresses that are updated
BPosting donation addresses that are linked to accounts at centralized virtual asset service
CUsing the same donation address across multiple donation campaigns and media types
DForming relationships with virtual asset service providers that have strong KYC processes in

Explanation

Using self-hosted wallets, or wallets that are stored on the user's computer, is one of the tactics that may be used to finance terrorism with virtual assets such as Bitcoin. By creating many different donation addresses that are updated continuously, law enforcement will have a harder time tracing transactions. It is also important to note that using the same donation address across multiple donation campaigns and media types, as well as forming relationships with virtual asset service providers that have strong KYC processes in place, can draw attention from law enforcement and should be avoided.

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