Ukraine Ministry of Finance urges the Financial Action Task Force to blacklist russia ahead of Paris plenary

The Ministry of Finance of Ukraine urges the Financial Action Task Force (FATF) to exclude russia from the list of FATF member countries, and to place it on the Blacklist as a high-risk jurisdiction at its plenary and working group meetings, which take place in Paris on 20-24 February.  

russia is now one of the biggest threats to global financial security: engaging in money laundering, sanctions evasion, using the financial and banking systems to finance terrorism globally, and facilitating the proliferation of weapons of mass destruction (WMD) among states blacklisted by FATF.

FATF leads global action to tackle money laundering, terrorism and proliferation financing. russia’s actions are a clear violation of FATF’s own standards and must be addressed without delay. 

This will require all countries worldwide, including FATF member states, to apply enhanced due diligence and implement counter-measures to protect the international financial system from the ongoing risks emanating from russia.

The Ministry notes that FATF has already imposed restrictions on russia’s membership in the organization, depriving russia of its leadership roles and banning participation in current and future FATF project teams. However, russia’s ongoing attacks on the global financial system are a clear violation of international regulations and require a stronger response. Russia should be excluded from the list of FATF member countries.

The FATF must respond quickly to actions that threaten to undermine its mandate, especially if the threat comes from one of its members. Russia has demonstrated that it does not adhere to the FATF's rules and principles, and retaining russia as a member sends a harmful signal to FATF members and other jurisdictions.

Minister of Finance of Ukraine Sergii Marchenko stated:

“As we near the first anniversary of russia’s unprovoked and brutal war of aggression against Ukraine, it is time for both reflection and action. russia is violating the rules-based international order to undermine global peace and security.

russia has created a global food and energy crisis. It is financing international terrorist groups and is aiding North Korea in developing weapons of mass destruction. Money laundering, corruption and cybercrime carried out by russia and its agents continue to increase, undermining the stability of the financial system like never before. These are clear violations of FATF standards which meet the threshold for russia to be blacklisted.

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. The time has come to sanction russia as the terrorist state it has become. We must stop russia to protect not just Ukraine, but the entire global financial system.”