Putting Russia on the blacklist of the International Group on Combating Money Laundering (FATF) will affect all international contacts of Russian companies and private businessmen. This was stated by economic expert Andriy Novak in a commentary to UNN. The head of the Ukrainian Center for Security and Cooperation, Serhiy Kuzan, noted that this would slow down the Russian economy.
The possible inclusion of Russia in the list of money laundering groups will not directly affect the Russian economy, but will indirectly affect all international contacts of Russian counterparties, i.e. Russian companies and Russian private businessmen. Any of their international transactions, international financial transactions will be under the very watchful eye of the FATF
According to him, it will be much more difficult for Russia to circumvent the international sanctions currently imposed on it.
If this happens, it will be a very serious new signal that Russia is considered in the financial world, in the world of capital, to be a state that facilitates money laundering. It is no longer just some private individual, not just a company, but a whole state. Politically, it is called a terrorist state, but in the financial world it is a money laundering state
When asked whether this could affect the Russian economy in the long run, Novak replied: “Yes, in the long run, it will affect the reduction of international, economic and financial transactions with Russian counterparties.
In a commentary to UNN , Kuzan noted that Russians continue to actively exchange money, continue to purchase all the necessary electronics in the West, in developed countries, and continue to export their raw materials. The sanctions themselves do not work.
So, we understand that Ukraine's goal is to blacklist the Russian Federation so that wherever Russian money appears, it can be traced and banks can refuse any transaction involving Russian money. Relatively speaking, for the Russians, the issue of war is now just a matter of purchasing some expensive equipment or technology. That is, they just need to run these funds through several gaskets and other countries. And after potentially being blacklisted, it will actually be the responsibility of the counterparty, that is, those who sell goods for Russian money and know that in the end it will end up with the Russians
Kuzan noted that Ukraine's goal is to ensure that at the very least the Russian economy experiences a slowdown.
But most importantly, if these goods are paid for with Russian money, we understand that this will be the responsibility of the financial institutions that make the payments, that make these payments. At the very least, we want the Russian economy to slow down, and at the most, we want everything that Russians can buy in Western countries that can be used for war to be denied by banks and to make such transactions impossible
He also said that it is important for developed countries to refuse any interaction, to refuse to sell goods, because selling involves receiving money and delivering goods.
While it is certainly possible to supply goods, it will be much harder to get paid for it. This is the main task. In no way should we think that this will solve all the issues, that the Russians will not be able to continue the war. These will be additional complications. They will not destroy the economy of the war, but they will definitely slow it down for the Russians. That is why the inclusion of Russia in the blacklists, that is, equating it with Iran and North Korea, is very important today. This will be the only effective signal that financial institutions will not interact, that is, will not use Russian money for military purposes
AddendumAddendum
Politico reported, citing a confidential document, that the International Group on Combating Money Laundering (FATF) will decide next week whether to add Russia to its blacklist.