Financial Crimes Watchdog FATF Suspends Russia's Membership Over Ukraine Invasion

The FATF stated that the Russian Federation remains accountable for its obligation to implement the FATF Standards and it took the step to suspend the Russian Federation over its Ukraine Invasion.

The FATF stated that the Russian Federation remains accountable for its obligation to implement the FATF Standards and it took the step to suspend the Russian Federation over its Ukraine Invasion.

Source : File Photo/AFP

The Financial Action Task Force (FATF), a global financial crime watchdog, suspended Russia's membership on Friday, reported news agency Reuters. The reason cited was Moscow's ongoing war in Ukraine, which, the FATF stated, violated the organisation's principles. The FATF is an inter-governmental organisation that combats money laundering and terrorism financing by setting global standards and ensuring countries adhere to them.

In a statement released by the Paris-based group, the FATF stated that "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". It further added that Russia's actions represented a gross violation of the commitment to international cooperation and mutual respect, which FATF members agreed to implement.

Ukraine welcomed the decision to suspend Russia's membership, but added that it would continue to urge FATF members to take further steps and blacklist and sanction Russia. Ukrainian Finance Minister Serghiy Marchenko stated that "it's not enough, but it's an important step in the right direction." Ukraine has repeatedly called for Russia's exclusion from the organization as it seeks to use international and intergovernmental organisations to pressure Moscow, which has been involved in the ongoing war for over a year.

The FATF stated that "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 recognises the role the Russian Federation has played in the development of the Global Network in the Eurasian region since the Russian Federation joined the FATF in 2003. However, as a result of the invasion [of Ukraine], the FATF has decided to severely limit the Russian Federation’s role and influence within the FATF. In particular, the Russian Federation can no longer hold any leadership or advisory roles or take part in decision-making on standard-setting, FATF peer review processes, governance and membership matters. The Russian Federation can also no longer provide assessors, reviewers or other experts for FATF peer-review processes," the FATF statement read.

The FATF, meanwhile, added South Africa to its "grey list" of countries under special scrutiny to implement standards to prevent money laundering and terrorism financing. It also removed Morocco from the "grey list", reported Reuters.

FATF members include 39 countries, such as the United States, India, China, Saudi Arabia, European countries like Britain, Germany, and France, and the European Union. Ukraine is not a member of the organisation.