On 11 March 2026, the Financial Action Task Force (FATF) issued a report, Understanding and Mitigating the Risks of Off-shore Virtual Asset Service Providers.
The FATF has issued this report so that parties may better understand the risks of off-shore Virtual Asset Service Providers (oVASPs) with a view to identifying good practices in mitigating these risks. The report also presents good practices to detect, license or register oVASPs, as well as to enforce sanctions for non-compliance with anti-money laundering obligations and roll-out mitigating measures (e.g., reducing unregistered or unlicensed oVASPs’ ability to actively provide services in a market where they are not regulated). It concludes with possible recommendations for stakeholders and should be read alongside the FATF’s broader guidance and work on virtual assets.