The Financial Action Task Force on Money Laundering suspended Russiaʼs membership

The Financial Action Task Force on Money Laundering (FATF) has suspended Russiaʼs membership. They noted that Russiaʼs invasion of Ukraine contradicts the basic principles of the organization.

The FATF press service writes about it.

"The actions of the Russian Federation inadmissibly contradict the main principles of the FATF aimed at strengthening the security, reliability and integrity of the global financial system. They are also a gross violation of the obligations of international cooperation and mutual respect on the basis of which FATF members agreed to implement and maintain FATF standards. Taking into account the above, the FATF decided to suspend the membership of the Russian Federation," the message reads.

They emphasized that Russia is still responsible for compliance with FATF standards and must fulfill its financial obligations.

The FATF is an intergovernmental organization established in 1989 at the initiative of the G7 to develop anti-money laundering policies. Subsequently, its powers were expanded to combating the financing of terrorism. The FATF includes 37 countries and two organizations — the European Union and the Cooperation Council of the Arab States of the Persian Gulf.

Although FATF does not have binding decisions, its reports and conclusions influence the global financial system and the work of investors. In particular, the organization maintains a so-called black list of countries that do not cooperate with the FATF and do not fight money laundering or may finance terrorism. It is extremely difficult for such states to attract foreign investment.