FATF to consider Ukraine's request to blacklist Russia - Politico

The Financial Action Task Force on Money Laundering (FATF) will decide next week whether to add Russia to its blacklist. According to a confidential document, this is once again demanded by Ukraine.

This was reported by RBC-Ukraine with reference to Politico.

This Paris-based body regularly evaluates countries according to their commitment to combating money laundering, terrorist financing, and financing the proliferation of nuclear, chemical, or biological weapons.

Being blacklisted or graylisted by the FATF can seriously damage a country's financial reputation and is considered economically disastrous for most countries.

The FATF suspended Russia's membership in February 2023 - a year after Moscow's invasion of Ukraine - but has so far refrained from blacklisting it. Now Ukraine has stepped up its campaign to change that.

The FATF has publicly stated that it considers Russia's aggression unacceptable and contrary to its “core principles,” but in practice, downgrading Russia requires consensus from its multilateral members.

Currently, the intergovernmental body brings together about 40 countries, including China, India, Brazil, South Africa, and Saudi Arabia. It meets three times a year to assess which countries should be included in or removed from the gray and black lists.

According to the document, Ukraine first requested that Russia be included in the high-risk jurisdictions in April 2022 and has since then been continuously - albeit unsuccessfully - providing new evidence to downgrade Moscow.

To succeed in the latest round of meetings, Ukraine will have to convince the internal FATF body tasked with reviewing the nominations and supporting evidence, which will meet on October 22, to recommend the proposal for formal consideration.

If Ukraine's latest initiative is successful, Russia will join Iran, North Korea, and Myanmar on the FATF's list of countries with the highest risk.

The dossier submitted to the members emphasizes the close financial and military cooperation between Russia and high-risk countries such as North Korea and Iran. It also emphasizes Russia's funding of private groups, such as the Wagner Group, and their related illegal activities.

It also mentions the role of channels on the Telegram messaging app and cryptocurrencies in helping Russia finance terrorism and launder “money obtained from the sale of goods stolen during the invasion of Ukraine,” from grain to minerals.

Author - Olena Madiak, 16/10/2024