Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

Acams CCAS Exam - Topic 2 Question 16 Discussion

An analyst at a virtual asset service provider (VASP) that white-labels its exchange solution to other cross-border VASPs is developing a VASP onboarding procedure. Under Financial Action Task Force Recommendation 13, which CDD practices should be applied to such relationships? (Select Three.)
C) Assess the nature and purpose of the VASP relationship and D) Obtain approval from senior management and E) Assess the VASP's supervision and if a license/registration is needed
A) Obtain approval from the local supervisory authority
B) Assess the profitability of the VASP relationship

Acams CCAS Exam - Topic 2 Question 16 Discussion

Actual exam question for Acams's CCAS exam
Question #: 16
Topic #: 2
[All CCAS Questions]

An analyst at a virtual asset service provider (VASP) that white-labels its exchange solution to other cross-border VASPs is developing a VASP onboarding procedure. Under Financial Action Task Force Recommendation 13, which CDD practices should be applied to such relationships? (Select Three.)

Show Suggested Answer Hide Answer
Suggested Answer: C, D, E

FATF Recommendation 13 (Correspondent Banking and Similar Relationships) and its application to VASP--VASP relationships require enhanced due diligence before onboarding. This is because such arrangements carry elevated ML/TF risk, especially in cross-border settings.

Required CDD practices include:

Assess the nature and purpose of the VASP relationship (C): Understand why the relationship is being established and the expected services/products.

Obtain approval from senior management (D): Senior management oversight ensures risk is accepted at the appropriate governance level.

Assess the VASP's supervision and if a license/registration is needed (E): Confirm regulatory oversight, licensing, and compliance with AML/CFT obligations.

Options A and B are not core FATF requirements for CDD in this context --- local authority approval may be a domestic regulatory requirement in some countries, but not a FATF baseline, and profitability assessment is a business decision, not an AML measure.


Contribute your Thoughts:

0/2000 characters
Desire
4 days ago
Wait, do we really need to assess profitability? Seems off.
upvoted 0 times
...
Eladia
10 days ago
Definitely need approval from senior management too.
upvoted 0 times
...
Lamonica
15 days ago
Gotta assess the nature and purpose of the relationship!
upvoted 0 times
...
Rosalind
20 days ago
I’m not sure if assessing profitability is necessary for CDD, but I do recall that understanding the relationship's purpose is key. So, I’d lean towards C and E for sure.
upvoted 0 times
...
Marvel
25 days ago
I think assessing the VASP's supervision and licensing is crucial, so option E seems right. It reminds me of a similar practice question we did in class.
upvoted 0 times
...
Sheron
1 month ago
I'm a bit unsure about whether we need to get approval from senior management or the local supervisory authority. I feel like both could be relevant in different contexts.
upvoted 0 times
...
Haydee
1 month ago
I remember we discussed the importance of understanding the nature and purpose of the VASP relationship, so I think option C is definitely one of the correct answers.
upvoted 0 times
...

Save Cancel