Svmuu News The Financial Action Task Force (FATF), the global anti-money laundering watchdog, has issued a new report highlighting the risks of money laundering, sanctions evasion, and other illicit financial activities associated with offshore Virtual Asset Service Providers (oVASPs). The report notes that some offshore crypto companies exploit differences in regulatory and supervisory coverage, making it difficult for authorities to effectively monitor transactions and enforce Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regulations. As many offshore crypto businesses operate across multiple jurisdictions—for example, with company registration, infrastructure, and customer bases located in different countries—regulators struggle to clearly assign oversight responsibilities, and international cooperation is consequently hindered. FATF recommends that countries should require registration or licensing of these entities even when they provide services from abroad, and should enhance cross-border regulatory and law enforcement collaboration. Furthermore, FATF had previously warned that peer-to-peer stablecoin transactions and non-custodial wallets could undermine AML supervision, necessitating national-level risk assessments and the establishment of protective mechanisms. (Cointelegraph)