![\"FATF](\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjYtMDMvMDE5Y2UxZTQtNWRkOC03YjRmLTkwMzQtY2U4MDcyMWEzMjQwLmpwZw==.jpg\")
<\/p>\n<\/p>\n
A new FATF report says crypto exchanges operating offshore can create gaps in AML enforcement, making it harder for regulators to track illicit activity.<\/p>\n
A new report from the Financial Action Task Force (FATF) warns that crypto service providers operating offshore pose risks of money laundering, sanctions evasion and other illicit financial activity.<\/p>\n
In the report<\/a>, titled \u201cUnderstanding and Mitigating the Risks of Offshore Virtual Asset Service Providers (oVASPs),\u201d the FATF said some offshore firms exploit gaps and differences in regulatory and supervisory coverage, making it harder for authorities to monitor activity and enforce Anti-Money Laundering (AML) and Counter-Terrorist Financing rules.<\/p>\n \u201cAs a result, effective international co-operation may not be possible, including with the relevant oVASP supervisor, thereby limiting the effectiveness of domestic risk-mitigation measures,\u201d the report said.<\/p>\n Read more<\/p>\n<\/p>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n If you want to read more News<\/a> articles, you can visit our General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n