Achieve the CCAS Exam Best Results with Help from ACAMS Certified Experts [Q21-Q37]

March 11, 2026 admin 0

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Achieve the CCAS Exam Best Results with Help from ACAMS Certified Experts

Provide CCAS Practice Test Engine for Preparation

QUESTION 21
A compliance officer Is assigned a group of customers. Which action should the officer fake to determine the appropriate level of customer due diligence apply to each customer?

Assess only the money laundering risks posed by customer location

Examine what Threshold for occasional transactions can be set for each customer.

Implement the same COD measures for each customer.

Take into account all risk variables such as me purpose of the account or relationship

A risk-based approach to customer due diligence requires considering all relevant risk factors including customer profile, the nature and purpose of the account or relationship, geographic risks, transaction patterns, and other relevant factors. This ensures that CDD intensity is commensurate with assessed risk.
Assessing only location (A) or transaction thresholds (B) is insufficient alone. Applying uniform CDD measures (C) contradicts the risk-based approach advocated by FATF and DFSA regulations.
DFSA AML guidance explicitly requires comprehensive risk assessment considering multiple variables to determine appropriate due diligence levels.

QUESTION 22
Which type of wallet poses the highest AML risk?

Exchange hot wallet

Custodial wallet

Unhosted wallet

Multi-signature wallet

Unhosted wallets allow direct user control without third-party oversight, making them harder to monitor and more vulnerable to misuse.

QUESTION 23
Misconfigured smart contracts can allow which type of scam to occur?

Phishing

SIM

Rug pull

Ransomware

Misconfigured or poorly designed smart contracts can enable rug pull scams, where developers create fraudulent decentralized finance (DeFi) projects or tokens and then withdraw liquidity or funds abruptly, leaving investors with worthless assets.
Phishing (A) and SIM attacks (B) relate to social engineering and telecom fraud, respectively, and ransomware (D) is malware demanding payment. Rug pulls specifically exploit smart contract vulnerabilities.
The DFSA and AML thematic reviews on crypto highlight rug pull scams as a key operational and financial crime risk linked to smart contract vulnerabilities.

QUESTION 24
In cryptoasset compliance, “integration” refers to:

Converting illicit crypto into fiat or legitimate assets.

Mixing crypto to hide origins.

Transferring crypto between wallets.

Staking assets to earn rewards.

Integration is the final stage of money laundering, where illicit funds re-enter the economy appearing legitimate – e.g., converting crypto into fiat via exchanges or buying assets.

QUESTION 25
Which privacy-enhancing feature hides both the sender and receiver in a transaction?

Ring signatures

Multi-sig

Proof-of-Authority

Token swap

Ring signatures, used in Monero, blend a sender’s transaction with others to obscure sender identity, increasing AML risk.

QUESTION 26
Which statement regarding cryptocurrencies, digital assets, and blockchain is correct?

Cryptocurrencies use encryption techniques operating independently from a central bank.

Cryptocurrencies and blockchain are the same and are terms used interchangeably.

Digital assets can only operate on a blockchain.

Cryptocurrencies, blockchain, and digital assets can all be used as a means of payment.

Cryptocurrencies are digital currencies secured by cryptography, operating independently from any central bank or government. Blockchain is the underlying distributed ledger technology supporting cryptocurrencies and other digital assets.
Cryptocurrencies and blockchain are not the same (B). Digital assets can exist off-blockchain (C), such as tokenized assets on centralized databases. While cryptocurrencies can be used as payment, blockchain itself is a technology, not a payment method (D).

QUESTION 27
Which term describes converting one cryptoasset into another without first converting to fiat?

Layering

Chain hopping

Integration

Structuring

Chain hopping involves moving between blockchains to make tracing harder, often exploiting regulatory gaps.

QUESTION 28
Which risk category covers threats from ransomware actors demanding payment in cryptoassets?

Operational risk

Counterparty risk

Cyber-enabled financial crime risk

Liquidity risk

Ransomware schemes are categorized as cyber-enabled financial crimes. AML/CFT frameworks require that such risks be assessed and mitigated through blockchain analytics, sanctions screening, and transaction monitoring for known ransomware wallet addresses.

QUESTION 29
Which blockchain features built-in privacy measures to prevent tracing and conceal ownership and flow of illicit funds?

Cardano

Polygon

Ethereum

Monero

Monero is a privacy-focused blockchain designed with built-in features like ring signatures, stealth addresses, and confidential transactions to obfuscate sender, receiver, and transaction amounts, making tracing difficult.
Cardano, Polygon, and Ethereum are not designed primarily with these privacy features and have publicly traceable ledgers, although privacy solutions may be layered on.

QUESTION 30
Which risk category best reflects the risks associated with payment methods (e.g., cash, wires, credit cards, virtual assets)?

Geographical

Customers

New technologies

Products and services

The risks posed by different payment methods fall under the products and services risk category because payment methods are specific services and products offered by financial institutions or businesses. This category assesses inherent risks linked to how products are designed and used.
Geographical (A) relates to location risks; customers (B) relates to the nature of customers; new technologies (C) covers emerging tools but payment methods are classified under products/services.

QUESTION 31
Which are essential components of an AML program for Customer Due Diligence (CDD)? (Select Three.)

Requirement for training of staff responsible for gathering CDD information

Requirement to keep all information necessary to maintain a customer’s risk profile

Requirement to maintain an accurate and complete list of virtual assets exposed to high risk of misuse

Procedures to annually review all clients

Procedures to ensure that high-risk customers’ IP addresses are subject to ongoing monitoring

Procedures to address circumstances where the true identity of a customer is questionable

An effective AML CDD program must include:
Staff training on gathering CDD (A)
Maintaining complete information to support risk profiling (B)
Procedures to address situations where the customer’s true identity is unclear or questionable (F) Annual client reviews (D) and IP address monitoring (E) may be part of broader AML controls but are not fundamental CDD requirements. Maintaining a list of high-risk virtual assets (C) is important but relates more to product risk management than direct CDD.

QUESTION 32
According to me Financial Action Task Force’s (FATF’s> definition of virtual asset service provider (VASP), for which activity is an entity required to be licensee or registered as a VASP in the jurisdiction(s) where they are created?

Cryptocurrency mining operations

Safekeeping and/or administration of virtual assets and exchange between one or more forms of virtual assets

Operating blockchain nodes

Virtual money service businesses

FATF defines VASPs as entities that conduct certain specified activities involving virtual assets. Licensing or registration as a VASP is required primarily for entities engaged in activities such as safekeeping and/or administration of virtual assets or conducting exchanges between one or more forms of virtual assets.
Cryptocurrency mining operations (A) and operating blockchain nodes (C) are generally excluded from the VASP definition because they do not involve handling customer funds or providing financial services. Virtual money service businesses (D) is a broader term that may include VASPs but not all such businesses fall under VASP regulations unless they meet the activity criteria.
This aligns with the DFSA AML Module and FATF Recommendation 15, which regulate entities providing virtual asset custody or exchange services to customers and require them to be licensed or registered.

QUESTION 33
Which operational risk mitigation practice by virtual asset service providers (VASPs) is most effective when considering their relationships with other VASPs?

Having no requirement to establish a correspondent relationship and build a risk assessment framework among other cryptoasset exchanges prior to transferring for or on behalf of another person

Developing cross-border correspondent relationships with cryptoasset exchanges in jurisdictions that have weak or non-existent anti-money laundering (AML) regulation or supervision

Assigning all such relationships as high risk and conducting enhanced due diligence on all of them

Gathering sufficient information on the counterpart VASP to determine the quality of the supervision it receives for transactional activities

Effective risk mitigation requires VASPs to obtain sufficient information about counterpart VASPs to assess the quality of their regulatory supervision and controls. This helps determine the risk of transactions and build a risk-based framework for correspondent relationships.
Having no requirements (A) or engaging with poorly regulated jurisdictions (B) increases risk. Blanket high-risk classification (C) without proper assessment is inefficient.
FATF Recommendation 15 and DFSA guidance emphasize due diligence on counterparties as a critical control.

QUESTION 34
Which blockchain characteristic makes forensic tracing of transactions possible?

Smart contract automation

Decentralized governance

Immutable public ledger

Sharding

Blockchain’s immutability ensures that all transactions remain permanently recorded and tamper-proof, enabling blockchain analytics to trace illicit funds. This property is leveraged in crypto forensic investigations and AML monitoring.

QUESTION 35
Which token type should be considered as carrying the highest risk when assessing the AML risks related to the customer’s source of funds?

Privacy

Stablecoin

Platform

Security

Privacy tokens are specifically designed to obfuscate transaction details such as sender, recipient, and amounts, making them inherently high risk for money laundering and terrorist financing. Their anonymity-enhanced features pose significant challenges to AML efforts.
Stablecoins (B), platform tokens (C), and security tokens (D) have varying risk profiles but generally provide more transparency or are subject to regulatory frameworks, reducing inherent AML risk compared to privacy tokens.
FATF and DFSA AML frameworks highlight privacy tokens as a priority for enhanced due diligence and risk mitigation due to their abuse potential.

QUESTION 36
What is “layering” in the context of money laundering using cryptoassets?

Splitting transactions into smaller amounts to evade reporting thresholds

Moving illicit funds through complex transactions to obscure origin

Converting crypto into fiat currency

Freezing illicit accounts

Layering involves creating complex transaction chains to disguise the illicit origin of funds. In crypto, this may involve multiple wallet hops, cross-chain swaps, and the use of privacy-enhancing technologies.

QUESTION 37
Under FATF guidelines, VASPs must file a Suspicious Transaction Report (STR) when:

Any transaction is over $1,000

They suspect funds are linked to criminal activity, regardless of amount

A politically exposed person makes a deposit

The transaction involves an unhosted wallet

FATF Recommendation 20 mandates that STRs be filed whenever there is suspicion or reasonable grounds to suspect criminal proceeds, regardless of the transaction value. This is mirrored in DFSA and FSRA AML regulations, ensuring that the reporting obligation is triggered by suspicion, not just thresholds.

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