CAMS · Question #996
When a financial institution (FI) is considering providing traditional banking services to a virtual asset service provider (VASP), consideration should be given to whether the FI: (Select Two.)
The correct answer is A. has a general understanding of virtual assets. C. implements enhanced KYC measures. A: FIs should ensure they have a general understanding of virtual assets and VASP operations to assess risks accurately. C: Enhanced KYC measures are recommended for VASPs due to their higher ML/TF risk profile. "FIs must understand the business model and risk of VASPs and…
Question
When a financial institution (FI) is considering providing traditional banking services to a virtual asset service provider (VASP), consideration should be given to whether the FI: (Select Two.)
Options
- Ahas a general understanding of virtual assets.
- Bconsistently reviews transactions between fiat and virtual currencies.
- Cimplements enhanced KYC measures.
- Downs virtual currencies itself.
How the community answered
(23 responses)- A70% (16)
- B17% (4)
- D13% (3)
Explanation
A: FIs should ensure they have a general understanding of virtual assets and VASP operations to assess risks accurately. C: Enhanced KYC measures are recommended for VASPs due to their higher ML/TF risk profile. "FIs must understand the business model and risk of VASPs and apply enhanced due diligence as required by FATF and regulatory guidance."
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