Paris, March 10 -- A new report from the Financial Action Task Force highlights how gaps in oversight of offshore Virtual Asset Service Providers (oVASPs) are exploited to facilitate large-scale fraud, money laundering, and terrorism financing. It also presents good practices to detect, license or register and supervise oVASPs, as well as sanction non-compliant ones.

Offshore VASPs are VASPs created under the laws of one jurisdiction, with or without a physical presence, that provide services to clients residing in another jurisdiction. The report analyses how oVASPs structure their activities to avoid or evade regulatory obligations and how illicit actors exploit these vulnerabilities.

Understanding and Mitigating the Risks of Offshore...