Discuss Acams CCAS Exam Topic 1 Question 18

What is indirect exposure in regards to blockchain analytics transaction monitoring?

AThe cryptoassets are absolutely linked to a specific user and identity on the blockchain.

BThe cryptoassets have a connection to risky activity via another crypto address or addresses.

CThe cryptoassets went through a mixing protocol to conceal source of funds.

DThe fiat currency is not immediately linked to a known bank account.

Suggested Answer: B

Indirect exposure refers to a situation where cryptoassets are not directly associated with illicit activity but have transactional links through other addresses that are associated with risky or illicit behavior. Blockchain analytics tools detect these indirect links to flagged addresses, allowing firms to assess risk based on network connections rather than direct ownership or activity.

The DFSA AML guidance and international FATF Virtual Assets guidance explain that indirect exposure is a critical concept for transaction monitoring as it broadens the detection scope beyond direct transactions, flagging assets that might be ''tainted'' through intermediary addresses.

FATF Guidance on Virtual Assets and VASPs emphasizes monitoring both direct and indirect exposure of wallets to illicit activity.

DFSA AML Module Section 13 on Suspicious Activity Reports requires firms to incorporate indirect exposure assessments in their monitoring systemsAML/VER25/05-24: Sections 4.1, 6.3, 13.3; FATF VA Guidance 2021.

Therefore, B is the correct definition.

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25 comments · newest first

Heike 2 days ago

Exactly, B connects the dots without direct links.

Lonny 7 days ago

B covers the essence of indirect exposure well.

Louisa 12 days ago

But D is more about fiat, not cryptoassets directly.

Elina 17 days ago

D is interesting too. It shows the fiat connection.

Tammara 23 days ago

True, but B feels more accurate for indirect exposure.

Sanjuana 28 days ago

I feel B covers the broader risks involved.

Tonja 1 month ago

C is a strong contender. Concealment is key in analytics.

Leatha 1 month ago

C could also be a contender. Mixing protocols are a big deal.

Katina 1 month ago

I lean towards B. It captures the essence of indirect exposure.

Catarina 2 months ago

D is interesting too. Fiat not linked is indirect exposure.

Mitsue 2 months ago

But A is too direct. Indirect means less certainty.

Wynell 2 months ago

C could also be valid. Mixing protocols hide the source.

Izetta 2 months ago

I agree, B feels right. It shows the link to other addresses.

Adrianna 2 months ago

I think it's B. Connections to risky activity make sense.

Marcelle 2 months ago

I agree, B makes sense. It highlights the indirect link.

Elmira 3 months ago

I think B is the right answer. It shows the connection to risky activities.

Kiley 3 months ago

D is interesting, but I’m not sure how it fits in here.

Van 3 months ago

A is totally wrong; it’s not about direct links.

Caitlin 3 months ago

Wait, so indirect exposure means it’s not directly linked? Sounds fishy.

Rasheeda 3 months ago

I think C makes more sense, though.

Lanie 4 months ago

B is the right answer, definitely!

Mila 4 months ago

I recall a practice question about how fiat currency ties back to accounts, which makes me think option D could also be relevant to indirect exposure.

Laticia 4 months ago

I feel like we discussed how indirect exposure doesn't directly tie a user to their assets, which could relate to option A, but I'm not confident.

Vallie 4 months ago

I'm not entirely sure, but I remember something about mixing protocols being linked to indirect exposure. Maybe that's option C?

Craig 4 months ago

I think indirect exposure might relate to option B, where assets connect to risky activities through other addresses. That sounds familiar from our case studies.

Acams CCAS Exam - Topic 1 Question 18 Discussion