FATF gets ready to evaluate the potential blacklisting of Russia
Date
10/19/2024 1:10:40 AM
(MENAFN) The financial Action Task Force (FATF), an intergovernmental organization dedicated to combating money laundering and financial crime, is set to evaluate the potential blacklisting of Russia during its upcoming meeting next week. Politico reports that this decision comes in response to increasing pressure from Ukraine, which has actively campaigned for Moscow's designation as a high-risk jurisdiction.
Scheduled to convene on October 22, the FATF will discuss possible actions against Russia, following Ukraine's initial request for such measures shortly after the conflict began in April 2022. Being placed on the FATF's blacklist could severely damage a nation's financial reputation, signaling issues with the rule of law and deterring foreign investment.
Russia has been a member of the FATF since 2003 but was suspended in February 2023. The organization cited Moscow’s military actions in Ukraine as contradictory to its core principles. In response, Russia’s Central Bank and Federal Financial Monitoring Service have labeled the FATF's decision as unfounded and politically motivated.
Despite Ukraine's consistent efforts to present new evidence to support its push for Russia’s blacklisting, the FATF has yet to formally include Russia in either its blacklist or gray list. Ukraine has highlighted the close cooperation between Russia and other blacklisted nations, such as North Korea and Iran, as well as Russia's financing of private military companies like the Wagner Group, as key reasons for the move.
Moreover, Ukraine has raised concerns about the use of platforms like Telegram Messenger and cryptocurrencies, which it claims facilitate Russia's involvement in terrorist financing and money laundering activities. As the FATF prepares for its meeting, the outcome could have significant implications for Russia's international financial standing and its ongoing conflict with Ukraine.
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