Cryptocurrency and convertible virtual currencies present common financial crime risks such as obscuring the origin of illicit funds, being used to layer transactions for money laundering, and facilitating payments for illegal goods and services due to their pseudo-anonymous and borderless nature.

Adverse media screening seeks to identify reputational or financial crime risk by:
* B: Identifying links to criminal activity or sanctions.
* C: Monitoring regulatory actions and updates for risk associations.
* D: Regularly scanning news and public records for negative information.
"Adverse media screening involves collecting and reviewing publicly available information, news, and regulatory actions to detect links to criminal activity or reputational risks." (CAMS 6th Edition, Adverse Media Screening; FATF Guidance) Incorrect:
* A and E: Customer sentiment and credit scores are not core to adverse media screening.
References:
CAMS 6th Edition, Customer Due Diligence and Screening
FATF Guidance on Customer Due Diligence

Financial institutions must conduct thorough background checks on employees in sensitive roles (e.g., private banking) to mitigate fraud, insider trading, and money laundering risks.
Option A (Correct): Past employment records help verify work history and identify any red flags related to prior financial misconduct.
Option D (Correct): Internet and media searches reveal any negative press, regulatory issues, or connections to illicit activity.
Option E (Correct): Criminal history searches help screen for prior convictions related to financial crimes.
Why Other Options Are Incorrect:
Option B (Incorrect): Personal references are less reliable and may not uncover objective risk factors.
Option C (Incorrect): A resume is self-reported and should be verified using independent sources.
Best Practices for Employee Background Screening:
Conduct enhanced due diligence for high-risk roles (e.g., private bankers, compliance officers).
Use reliable background screening tools and legal databases.
Verify employment history and check against regulatory blacklists.
Reference:
FATF Recommendation 18 (Internal Controls & Employee Screening)
Wolfsberg Group Guidance on AML Employee Background Checks
6th EU AML Directive (6AMLD) on Employee Due Diligence

In a mutual evaluation, a country must demonstrate to the FATF that it has an effective framework to protect its financial system from abuse. This process assesses both technical compliance with FATF Recommendations and the effectiveness of the country's AML/CFT measures.