According to the Financial Action Task Force report, "Virtual Assets Red Flag Indicators", which activity is a red flag related to anonymity?
A.
Executing multiple high-value transactions after a period of inactivity from the client
B.
Engaging in abnormal transactional activity of virtual assets cashed out at exchanges from peer-to-peer hosted wallets with no logical business explanation
C.
Making frequent transfers in a certain period of time (e.g., a day, a week, a month) to the same virtual asset account with a well-known virtual asset service provider
D.
Conducting Bitcoin-fiat currency exchanges at a potential loss
Red flags related to anonymity include transactions where virtual assets are cashed out at exchanges from peer-to-peer hosted wallets with no clear business rationale. Such behavior indicates attempts to obscure the origin or destination of funds, characteristic of laundering activities.
Executing high-value transactions after inactivity (A) or frequent transfers to known VASPs (C) may be suspicious but are less directly linked to anonymity. Exchanging at a loss (D) is a different type of red flag.
FATF’s red flag indicators list (2021) highlights (B) as a key sign of anonymity-related risk.
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