Anti-money laundering group FATF suspends russia’s membership

The international anti-money laundering group Financial Action Task Force (FATF) altogether suspended russia's membership in the organization on Friday, February 24.

"We welcome the decision of FATF to fully suspend russia's membership: russia's actions unacceptably run counter to the FATF core principles aiming to promote security, safety, the integrity of the global financial system," European Trade Commissioner Valdis Dombrovskis announced on Twitter.

According to the results of the meeting, which lasted from February 22 to 24, the FATF stated that russia's ongoing and intensifying aggressive war against Ukraine is contrary to the FATF's principles of promoting the safety and integrity of the global financial system and the obligations regarding international cooperation and mutual respect. As a result, the Plenary meeting of the FATF suspended the membership.

Following the statements of March 2022, the FATF reiterated that all jurisdictions must be alert to current and emerging risks of circumvention of measures taken against russia to protect the international financial system.

Over the past year, Ukraine made repeated calls to the group to exclude russia altogether. Ukraine's finance minister urged the organization to blacklist russia as a high-risk jurisdiction: "FATF designating russia as high risk will choke putin's ability to finance his illegal and unjustified brutal war and insulate our economic systems from russian malfeasance. We must stop russia to protect not just Ukraine but the entire global financial system."

But while russia has now been suspended, it remains 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 said.

The head of the President's Office, Andrii Yermak, who is also on board of the Yermak-McFaul Expert Group on russian sanctions, commented on the suspension of russia's membership by the FATF, noting that the pressure on russia continues.

"Another success story in our sanctions policy against the terrorist state. FATF has indefinitely suspended the membership of the russian federation. The russians lost all FATF member rights," Yermak said. "Together with the sanctions group, we've been working hard to prove the need for such steps. We've been fighting for this decision for a very long time. The quest is done. But there is still much work to do to put more pressure on the russian aggressor. Keep moving."