Financial crime watchdog FATF suspends Russia’s membership over Ukraine conflict

Russia’s actions unacceptably run counter to the FATF core ideas aiming to advertise safety, security, and the integrity of the worldwide monetary system, mentioned the worldwide monetary crime watchdog.

Paris,UPDATED: Feb 24, 2023 21:33 IST

Russian President Vladimir Putin. (Photo: Reuters)

By Reuters: Global monetary crime watchdog Financial Action Task Force (FATF) suspended Russia’s membership on Friday, saying Moscow’s conflict in Ukraine violated the organisation’s ideas.

FATF is an inter-governmental organisation set as much as fight cash laundering and terrorism financing by setting international requirements and checking if nations respect them.

“The Russian Federation’s actions unacceptably run counter to the FATF core principles aiming to promote security, safety, and the integrity of the global financial system”, the Paris-based group mentioned in a press release.

“They also represent a gross violation of the commitment to international cooperation and mutual respect … FATF Members have agreed to implement,” it added.

Ukraine welcomed the choice to droop Russia however added that it will proceed its push with FATF members to go additional and get Russia blacklisted and sanctioned.

“It’s not enough but it’s an important step in the right direction,” Ukrainian Finance Minister Serghiy Marchenko mentioned.

Ukraine has made repeated calls to exclude Russia from the organisation because it seeks to make use of worldwide and intergovernmental organisations as a lever for pressuring Moscow, whose invasion on Friday entered a second 12 months.

But whereas Russia has now been suspended, it stays a member.

“The Russian Federation remains accountable for its obligation to implement the FATF Standards. The Russian Federation must continue to meet its financial obligations,” the FATF mentioned.

Separately, the FATF on Friday added South Africa to its “grey list” of nations underneath particular scrutiny to implement requirements to forestall cash laundering and terrorism financing and took Morocco out of the gray checklist.

FATF members embody 39 nations, together with the United States, India, China, Saudi Arabia in addition to European nations reminiscent of Britain, Germany and France and the EU as such. Ukraine will not be a member.

Posted By:

Rishabh Sharma

Published On:

Feb 24, 2023