Financial Action Task Force (FATF), the Paris-based intergovernmental organization that leads the fight against money laundering and terrorism financing, will decide whether to put Russia on its blacklist next week, according to a recent POLITICO report. FATF has so far held back from slashing Russia’s ranking, but Ukraine has upped its campaign to change that.
Key Points:
- FATF to consider blacklisting Russia over money laundering and terrorist financing risks.
- Russia’s membership was suspended in February 2023 following its invasion of Ukraine.
- Ukraine intensifies campaign to downgrade Russia to FATF’s highest-risk list.
- The decision could place Russia alongside Iran, North Korea, and Myanmar.
Short Narrative:
The Financial Action Task Force (FATF) is set to make a crucial decision next week on whether to blacklist Russia, a move that could severely damage the country’s financial standing. Despite suspending Russia’s membership in February 2023 due to its invasion of Ukraine, FATF has so far refrained from downgrading Russia’s ranking. Ukraine has been pushing for Russia to be classified as a high-risk jurisdiction, submitting evidence of Russia’s financial ties with rogue states like North Korea and Iran, as well as its use of Telegram channels and cryptocurrencies to facilitate terrorism financing.
Actionable Insight:
If FATF blacklists Russia, it would face increased financial isolation, affecting global markets and sanctions enforcement. This could be a significant move toward tightening the economic noose on Russia, potentially driving further illicit activities underground.