The Financial Action Task Force (FATF) issued a new statement last week at its plenary meetings in Berlin that restricts Russia from playing any significant role in the activities of the task force.
But while the global financial watchdog continues to call Russia’s invasion of Ukraine a “gross violation” of FATF core principles, it has not yet acted on pressure from senior Ukrainian politicians to blacklist Russia.
Recognition and restrictions
The FATF statement roundly condemns Russia’s activities in Ukraine but “recognises the role the Russian Federation has played in the development of the global network in the Eurasian region since the Russian Federation joined the FATF in 2003.”
It says as a result of the invasion, the FATF has decided to severely limit Russia’s role and influence within the task force and can no longer hold any leadership or advisory roles or take part in decision making on standard setting, FATF peer review processes, governance and membership matters.
Russia can also no longer provide assessors, reviewers or other experts for FATF peer review processes.
The FATF says it will monitor the situation and consider at each of its plenary meetings whether the grounds exist for lifting or modifying these restrictions.
The chairman and speaker of the Ukrainian parliament, Ruslan Stefanchuk, and finance minister, Sergii Marchenko, are amongst those urging the FATF to include Russia on its list of high-risk jurisdictions, often referred to as the global watchdog’s black list (Trade-based Financial Crime, 30 May 2022 and 14 March 2022).
The FATF Statement on the Russian Federation can be found here.
Categories: Trade Based Financial crimes News