Russia was expelled from the Council of Europe and suspended from the UN Human Rights Council, but remains a member of many major international organisations. YURI KADOBNOV / AFP
However, Russia remains under the obligation to respect the principles of the FATF and the Russian anti-money laundering system will continue to operate.
Russia has been suspended from the Financial Action Task Force (FATF), this anti-money laundering organization announced on Friday, accusing it in particular of “manifest violation” of the “Fundamental principlesfrom Gafi.
Since the creation of the organization in 1989, it is “the first time a member is suspended“commented Raja Kumar, the president of the Paris-based institution during a press conference, recalling that Russia remains however under the obligation to respect the principles of the Gafi. “The unacceptable actions of the Russian Federation go against the fundamental principles of the FATF aimed at promoting the security and integrity of the financial system“, underlines the Gafi in a press release, renewing its “support for the Ukrainian people“.
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“Such a decision is unfounded (and) does not follow established procedures and is beyond the mandate of the organization“Reacted Moscow. “This decision (…) does not entail any obligations or restrictions for financial institutions in Russia and abroad. Russia’s +anti-money laundering+ system will continue to operate in accordance with current legislationadded Russia.
The FATF has so far had 39 members and more than 200 countries and jurisdictions in total have committed to implementing its standards. In the wake of the Russian invasion of Ukraine, the FATF had already banned Moscow from having any advisory or decision-making role within the institution. Russia was expelled from the Council of Europe and suspended from the UN Human Rights Council, but remains a member of many major international organisations.
In March, Interpol had for example refused to suspend Moscow but had announced a strengthening of the control procedures applied in the transmission of messages from Russia to other member countries. EU Trade Commissioner Valdis Dombrovskis hailed “suspension of Russia’s membership“, in a tweet.
23 countries on the gray list
In addition, at the end of a five-day meeting in Paris, the Gafi updated its gray list of countries subject to enhanced surveillance. Morocco and Cambodia were dropped out, while Nigeria and South Africa were added.
In total, the gray list now includes 23 countries, including the United Arab Emirates, Panama and Syria. Morocco was placed on the list of countries under surveillance in February 2021 and Cambodia in February 2019, for shortcomings in the fight against money laundering and the financing of terrorism.
“This report hailed the formal political commitment of the Kingdom for the conformity of the national system for the fight against money laundering and the financing of terrorism, with international standards, as well as the total respect by our country of all its commitments in the fixed deadlines“, welcomed the department of the Head of Government of Morocco in a press release.
Rabat hopes that this decision will have a positive impact on “sovereign ratings and local bank ratings“, as “it will strengthen the image of Morocco and its positioning during negotiations with international financial institutions, as well as the confidence of foreign investors in the national economy“.
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The black list of countries at riskpupil” of money laundering, financing of terrorism and proliferation of weapons of mass destruction, has not been modified: “Iran, North Korea and Burmaremain there, said Raja Kumar.
The Gafi, responsible for studying the way in which terrorism is financed and money laundered, develops standards and issues recommendations so that member countries can take the necessary measures to remedy the shortcomings identified by the body. “The FATF process helps protect the integrity of the international financial system by issuing a public warning of risks emanating from identified jurisdictions“, he describes.
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