Next week, the Financial Action Task Force (FATF) is due to decide whether to add Russia to its blacklist. Ukraine is actively pursuing this step, informs Politico, referring to a confidential document, which was read by journalists of the publication.
The FATF, an international organization based in Paris, periodically assesses countries on their compliance with anti-money laundering, terrorist financing and proliferation of weapons of mass destruction requirements. Being on FATF’s “black” or “grey” list can seriously damage a country’s financial reputation and become “economically devastating.”
Earlier, in February 2023, the FATF suspended Russia’s membership due to its invasion of Ukraine, but so far refrained from adding the Russian Federation to the “blacklist”. Currently, Ukraine has stepped up efforts to change this status.
A decision to downgrade Russia requires a consensus among FATF members, which represent about 40 countries, including China, India, Brazil and South Africa. The body meets three times a year to assess countries that may be added or removed from high-risk lists.
Ukraine first asked to add Russia to the list of high-risk jurisdictions in April 2022. Since then, she has continuously provided new evidence in an attempt to persuade the FATF to review Russia’s status.
If Ukraine’s initiative turns out to be successful, Russia will be on the same list as countries like Iran, North Korea and Myanmar. The presented documents highlight Russia’s financial and military cooperation with high-risk countries, as well as the involvement of private military companies such as Wagner in illegal activities.
The document also draws attention to Russia’s use of the Telegram messenger and cryptocurrencies to finance terrorism and launder money obtained from the sale of stolen goods, such as grain and minerals from occupied Ukrainian territories.
The FATF is an intergovernmental organization created by the G7 to develop policies to combat money laundering and the financing of terrorism and weapons of mass destruction.
