EU possibly to aim at Russia’s financial reputation

(MENAFN) The European Union is reportedly considering placing Russia on its anti-money laundering “grey list,” a move aimed at damaging Moscow’s global financial reputation and tightening economic pressure, according to the Financial Times.

This list targets countries the EU believes have inadequate controls against illicit financial activity. If added, Russian individuals and companies would face stricter scrutiny and compliance measures from international banks and financial institutions, increasing the cost and complexity of doing business with them.

The European Commission is expected to release an updated list of high-risk third countries next week. The update had been delayed due to procedural issues but now appears to be back on track.

“There is widespread support for putting Russia on the list,” said Markus Ferber, a German member of the European Parliament from the center-right European People’s Party, the largest bloc in the EU legislature.

The EU typically aligns its blacklist with the Financial Action Task Force (FATF), a global watchdog organization combating money laundering and terrorism financing. While Russia’s FATF membership was suspended in 2023, political divisions within the organization have blocked any effort to formally place Moscow on its grey list. This has prompted EU officials to consider moving forward independently.

Despite the FATF suspension, Russia remains active in the Eurasian Group (EAG), a FATF-affiliated regional body. In 2024, the EAG acknowledged that Russia had made progress in areas such as sanctions enforcement and ownership transparency, though further improvements were recommended.

Ukraine has been a vocal advocate for Russia’s inclusion on the FATF blacklist, citing Moscow’s alleged financial ties to other blacklisted states. However, key FATF members — including China, India, Saudi Arabia, and South Africa — have opposed such efforts.

Russia, though suspended from FATF, continues to adhere to its standards and fulfill its financial obligations to the group.

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