Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

When assessing a customer's risk profile, which aspect focuses specifically on the customer's transactions?

1. Peer group evaluations

2. Cluster levels of similar transactions

3. Geographic asset distribution

4. Customer authentication levels

The correct answer is: Cluster levels of similar transactions

The aspect that focuses specifically on the customer's transactions is cluster levels of similar transactions. This approach involves analyzing patterns and groupings of transactions to identify any unusual behavior or trends that may indicate higher risk or potential suspicious activity. By clustering similar transactions, financial institutions can determine whether a customer's transaction activity is consistent with their expected behavior based on their profile. Peer group evaluations look at how a customer compares to similar customers, which does not provide the same detailed insight into individual transaction behaviors. Geographic asset distribution considers where assets are held but does not directly assess transaction specifics. Customer authentication levels involve verifying a customer's identity but are not related to the transaction activities themselves. Thus, focusing on cluster levels of similar transactions is critical for understanding and assessing a customer's risk profile effectively.