Outcomes of the June FATF plenary: suspension of russia's membership was extended but not blacklisted

On June 23-28, 2024, Plenary of the Financial Action Task Force (FATF) was held in Singapore.

According to the official outcomes of the FATF following the Plenary, the suspension of the russian federation continues to stand. Following the statements issued since  March  2022, the FATF reiterates that all jurisdictions should be vigilant to current and emerging risks from the circumvention of measures taken against the russian federation in order to protect the international financial system. However, russia was not blacklisted again. 

The FATF also issued a statement warning all countries of North Korea's growing financial ties to the international financial system and recalling the serious threats this poses to the financing of proliferation. The FATF emphasized the need for all countries to robustly implement the targeted financial sanctions on North Korea and termination of any correspondent relations with DPRK banks.

“We anticipated more decisive action from the FATF in light of substantial evidence of violations by russia. While I appreciate the decision to extend the suspension of russia's membership, I believe it falls short of the necessary response of blacklisting. The FATF, tasked with safeguarding the global financial system, should uphold its mandate and directly name the country that has increased its financial ties with North Korea in violation of UN Security Council resolutions. There is ample evidence of such cooperation. The lack of stricter sanctions against russia benefits the Kremlin, enabling it and potentially other malign actors to persist in undermining the international system,” said Minister of Finance of Ukraine Sergii Marchenko. 

Following the FATF Plenary, Head of the State Financial Monitoring Service of Ukraine Igor Cherkaskyi emphasized:

“Ukraine continues to be an active contributor to the FATF plenaries, and our contacts with delegations are intensifying. It is worth noting the high technical level of discussions on the risks posed by russia to the Global Network against Financing Proliferation, Terrorist Financing and Money Laundering. This work will be continued.

russia, as a suspended member of the FATF, should not evade responsibility for its actions under the FATF Mandate. Our team is working on further measures and I thank all colleagues at the national and international level who support these efforts”.