Which token type should be considered as carrying the highest risk when assessing the AML risks related to the customer's source of funds?

Privacy tokens are specifically designed to obfuscate transaction details such as sender, recipient,

and amounts, making them inherently high risk for money laundering and terrorist financing. Their

anonymity-enhanced features pose significant challenges to AML efforts.

Stablecoins (B), platform tokens (C), and security tokens (D) have varying risk profiles but generally

provide more transparency or are subject to regulatory frameworks, reducing inherent AML risk

compared to privacy tokens.

FATF and DFSA AML frameworks highlight privacy tokens as a priority for enhanced due diligence and

risk mitigation due to their abuse potential.