Navigating AML flags for offshore entities – any shared experiences?

Been pondering the increased scrutiny around transactions involving entities based in certain offshore jurisdictions, even for what appear to be legitimate business purposes. It feels like the regulatory net is getting wider, and what was once a minor flag is now a potential showstopper. We've certainly updated our internal matrices, but I'm curious if anyone here has encountered particular challenges or has best practices for clearing AML red flags when dealing with clients or counterparties domiciled in these zones. It's a fine line between due diligence and over-compliance that stalls business.