According to the FATF, offshore virtual asset service providers can enable money laundering, sanctions evasion and other illicit finance, underscoring the need for stronger registration, licensing and cross-border oversight.
The Financial Action Task Force said offshore virtual asset service providers pose risks related to money laundering, sanctions evasion and other illicit finance. FATF said their cross-jurisdiction operations make oversight and anti-money laundering enforcement more difficult, and urged countries to require registration or licensing and strengthen cross-border cooperation. The warning adds further context to India’s reported development of a Virtual Asset Lab intended to detect offshore virtual asset service providers that are not registered with the Financial Intelligence Unit of India. The newly added report does not provide a launch date, operational details or enforcement figures for the system.