The FATF has not blacklisted russia again, despite Ukraine's appeals
Kyiv • UNN
The suspension of russia's membership in the Financial Action Task Force on Money Laundering (FATF) remains in place, but it has not been blacklisted once again, despite Ukraine's calls for more decisive action due to russia's financial ties to North Korea, which violate UN resolutions.
The suspension of russia's membership in the Financial Action Task Force on Money Laundering (FATF) remains in effect, but the country has not been blacklisted again. This was reported by the press service of the Ministry of Finance on July 1 following the results of the FATF plenary meeting, UNN reports.
Details
Ukraine expected more decisive actions from the FATF due to the numerous evidences of violations by russia," emphasized Finance Minister Sergii Marchenko.
We expected more decisive action from the FATF in light of the numerous evidences of violations by russia. While I welcome the decision to extend the suspension of russia's membership, the appropriate response - blacklisting - is still lacking. The FATF, which is responsible for the security of the global financial system, should stick to 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 absence of tougher restrictive measures against russia plays into the kremlin's hands, allowing it and potentially other malign actors to continue to undermine the international system
At the same time, the FATF issued a statement warning all countries about North Korea's growing financial ties to the international financial system and recalling the serious threats this poses to the financing of weapons of mass destruction proliferation. The FATF emphasized the need for strict application of targeted financial sanctions against North Korea and termination of any correspondent relations with DPRK banks.
Recall
On February 24, the FATF suspended russia's membership indefinitely. Membership in the FATF allows for the tracing of the origin of funds when making payments between countries. If a country is expelled from the FATF, it effectively deprives it of the ability to regulate the money flow market. Ukraine has repeatedly called on the group to blacklist russia, but each time the FATF has refused.