nerdexam
ACAMS

CAMS · Question #785

Common risks associated with cryptocurrency and convertible virtual currencies include: (Choose three.)

The correct answer is B. obscuring the source of illicit funds. C. layering transactions to hide the origin of funds derived from illicit activity. E. facilitating payment for other illicit activities and goods. Cryptocurrency and convertible virtual currencies present common financial crime risks such as obscuring the origin of illicit funds, being used to layer transactions for money laundering, and facilitating payments for illegal goods and services due to their pseudo-anonymous…

Risks and Methods of Money Laundering and Terrorist Financing

Question

Common risks associated with cryptocurrency and convertible virtual currencies include: (Choose three.)

Options

  • Afunds being stolen from other users.
  • Bobscuring the source of illicit funds.
  • Clayering transactions to hide the origin of funds derived from illicit activity.
  • Ddifficulty converting into physical currency.
  • Efacilitating payment for other illicit activities and goods.

How the community answered

(29 responses)
  • A
    7% (2)
  • B
    83% (24)
  • D
    10% (3)

Explanation

Cryptocurrency and convertible virtual currencies present common financial crime risks such as obscuring the origin of illicit funds, being used to layer transactions for money laundering, and facilitating payments for illegal goods and services due to their pseudo-anonymous and borderless nature.

Topics

#cryptocurrency#virtual currencies#layering#money laundering risks

Community Discussion

No community discussion yet for this question.

Full CAMS Practice