FATF did not blacklist Russia

The Financial Action Task Force on Money Laundering (FATF) has not blacklisted Russia.

Source: Ministry of Finance of Ukraine

Quote: "The Ministry of Finance of Ukraine does not agree with the decision of the Financial Action Task Force (FATF) not to take further measures against Russia despite the increase in the number of violations of FATF standards."

Details: The Ministry of Finance has noted that after the suspension of Russia's membership in the FATF in February 2023, it stepped up activities related to money laundering, terrorist financing and the proliferation of weapons of mass destruction, as well as sanctions evasion. 

In particular, Moscow has deepened its cooperation with states on the FATF’s blacklist:

• trades arms and fuel with North Korea in violation of UN sanctions;
• deepened ties with Iran (sells fighter jets to Iran, buys drones for attacks on Ukraine, and started cooperation between banking systems).

Quote: "The FATF was aware of the increasing number of violations by Russia, but at the plenary meeting held in Paris this week, it was decided not to blacklist the country. 

The Ministry of Finance understands the difficulty of reaching a consensus among the wide range of FATF members. However, there is a risk that this decision may provoke Russia to further undermine global financial security."

More details: The Ministry of Finance and the State Financial Monitoring Service of Ukraine will continue the dialogue with the FATF and its members on the risks posed by Russia and work to achieve a more equitable response.

Quote from Finance Minister Serhii Marchenko: "Russia clearly meets the criteria for being blacklisted, and we disagree with the FATF's decision not to include it. A consolidated position of the international community is needed to confront the threat to the integrity of the global financial system posed by Russia and force it to abandon its blatant violations of international norms and FATF standards. Every day that we fail to act properly, we are provoking further chaos and destruction."

Background:

On Monday, 19 June, the plenary meeting of the FATF started in Paris, during which the issue of adding Russia to the organisation's blacklist is likely to be considered.

Ukraine is concerned about Russia's blackmailing of members of the FATF ahead of the organisation's June plenary meeting.

Earlier, Bloomberg reported that Moscow is putting pressure on governments, including India, by threatening to cancel defence and energy agreements if they do not help prevent Russia's financial isolation.

On Friday, 24 February 2023, the FATF suspended Russia's membership in the organisation.

In October 2022, the FATF imposed new restrictions on Russia, namely, limiting its ability to participate in the organisation's work and banning it from participating in regional groups as a FATF member.

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