The FATF acknowledged the growth of risks associated with russia, but refused to blacklist russia
Kyiv • UNN
Ukraine's Finance Ministry has criticized the FATF for not blacklisting russia despite evidence of its sanctions violations and increased financial ties with Iran and North Korea.
The FATF (Financial Action Task Force - ed.) has once again ignored Ukraine's call to add russia to the list of high-risk jurisdictions - the so-called "black list". This is reported by the Ministry of Finance of Ukraine, UNN writes.
Details
It is noted that the FATF) issued an extended statement on the risks posed by russia to the global financial system and extended the suspension of russia's membership without further restrictive measures.
The FATF stated that "members of the organization note with concern the potential risks to the international financial system, including russia's growing financial ties to countries subject to FATF countermeasures, the risks of financing the proliferation of weapons of mass destruction, and malicious cyber activity and ransomware attacks." The FATF also called on all states to remain vigilant against the above risks
The agency emphasizes that these updated guidelines do not address the Kremlin's continued and deliberate disregard for FATF standards and principles since its suspension a year ago.
The Ministry of Finance says it understands the political challenges of reaching a consensus on further measures, but the evidence shows that more needs to be done to counter the threats russia poses to the integrity of the global financial system.
In particular, last year russia stepped up arms trade with Iran and North Korea, which are on the FATF blacklist.
Since December, evidence has continued to emerge that russia has been purchasing North Korean missiles for use on the battlefield against Ukraine in violation of UN sanctions. This week, new reports emerged that Iran has sent ballistic missiles to russia.
We expected more decisive action from the FATF amid growing evidence of violations by russia. I welcome the FATF's expanded recommendations on the risks associated with russia, but what is missing is an appropriate response - blacklisting russia. (...) The absence of stronger restrictive measures dangerously plays into the Kremlin's hands, giving it and potentially other malign actors a green light to continue the gradual destruction of the international rules-based system
Addendum
The Ministry emphasizes that at the next plenary meeting, the FATF should take stricter restrictive measures to minimize these threats.
At the same time, the Ministry of Finance of Ukraine emphasizes that individual countries do not need to wait until the FATF processes lead to further restrictive measures.
The department explains that countries may add russia to their lists of high-risk countries, which will require enhanced scrutiny of all transactions related to russia, and may continue to impose other restrictive measures to prevent the Kremlin from abusing their systems for sanctions evasion, money laundering, and terrorist financing.
Recall
Ukraine has called on the FATF to blacklist russia at its upcoming meeting due to russia's growing financial ties with Iran and North Korea, which threaten global security.
