Finance Ministry Calls On FATF To Blacklist Russia

(MENAFN- UkrinForm) Ukraine's Ministry of Finance is calling on the Financial Action Task Force (FATF) to blacklist Russia at its upcoming plenary session on June 23.

That's according to the ministry's press service, Ukrinform reports.

"Russia's blatant violations have been on display for everyone to see. The Kremlin has been intensifying military and economic ties with North Korea and Iran, financing terrorist organisations inside and outside Russia, weakening anti-money laundering institutions and sponsoring rampant cyber-crime. FATF has one clear way to counter these violations and provide protection to the global financial system – by blacklisting Russia,” Minister of Finance Sergii Marchenko said.

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The ministry noted that as Russia's military continues to fail on the battlefield, Russia becomes more belligerent, particularly by deepening economic and military ties with North Korea. Ballistic missiles and munitions procured from North Korea in exchange for oil – in violation of UN sanctions and FATF principles – continue to be used against Ukraine's peaceful cities and civilians.

“An illicit financial network Russia has created and cultivated underpins its malign activities in Ukraine and around the world. This week, Russia announced the formalisation of financial ties with North Korea by creating 'alternative mechanisms of trade and mutual settlements' to 'jointly resist' the international community's efforts to restrict both countries' destructive behavior,” the ministry stressed.

It is noted that Russia has also intensified cooperation with Iran – a globally sanctioned and FATF-blacklisted state. The Kremlin has provided Tehran with a backdoor to access the international financial system by interlinking payment systems to bypass SWIFT sanctions and opening state VTB bank branches in Iran. Russia has also been heavily reliant on Iranian drones to maintain its illegal invasion.

As reported, the FATF is an intergovernmental organization established by the G7 to develop measures to combat money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction. In February 2023, the FATF took an unprecedented step by suspending Russia's membership.

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