CAMS Question #996: Real Exam Question with Answer & Explanation

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 apply

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.

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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