Discuss Acams CCAS Exam Topic 2 Question 19

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

AHaving 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

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

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

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

Suggested Answer: D

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.

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12 comments · newest first

Deonna 2 months ago

Option B could lead to trouble. Weak AML means higher risk for everyone.

Margarita 2 months ago

I agree, but option C seems safer. High risk means more caution.

Marg 2 months ago

I think option D is the best. Knowing the counterpart's supervision is crucial.

Sabine 2 months ago

Gathering info on counterpart VASPs is definitely key, I’m with D!

Christiane 2 months ago

Wait, are we really trusting VASPs with weak AML?

Doyle 3 months ago

A is just asking for trouble, no way that's effective.

Daniela 3 months ago

I disagree, C is way too cautious.

Jamal 3 months ago

D seems like the safest bet for VASPs.

Pura 3 months ago

I’m uncertain about the effectiveness of cross-border relationships in option B, especially with weak AML regulations. It seems risky!

Gilberto 3 months ago

I feel like we went over a similar question where gathering information on counterparties was emphasized, so I might lean towards D.

Stacey 3 months ago

I think option C makes sense because treating all relationships as high risk could help mitigate potential issues, but it seems a bit extreme.

Margarita 4 months ago

I remember we discussed the importance of due diligence in our last study group, but I'm not sure if option D is the best choice here.

Acams CCAS Exam - Topic 2 Question 19 Discussion