PARIS, Feb 24 (Portal) – The Financial Action Task Force (FATF), a global financial crime watchdog, on Friday suspended Russia’s membership, saying Moscow’s war in Ukraine violated the organisation’s principles.
The FATF is an intergovernmental organization created to combat money laundering and terrorist financing by setting global standards and verifying that countries comply with them.
“This is the first time a member of the FATF has been suspended,” FATF President Raja Kumar said at a news conference. “Russia is effectively excluded from the organization.”
Ukraine, which has repeatedly called for Russia to be excluded from the organization, welcomed the decision to suspend Russia but added that it will continue its pressure on FATF members to go further and blacklist Russia .
“It’s not enough, but it’s an important step in the right direction,” said Ukrainian Finance Minister Serhiy Marchenko.
Anatoly Antonov, Russia’s ambassador to the United States, denounced the decision as a “dangerous move” and said it would undermine global efforts to combat money laundering, terrorist financing and the proliferation of weapons of mass destruction, state news agency Tass reported.
last update
Watch 2 more stories
Although Russia is suspended, it remains a member of the FATF. The main consequences of Friday’s decision will be banning Russia from attending meetings and accessing documents, the FATF said.
“The Russian Federation remains responsible for its commitment to implement the FATF standards. The Russian Federation must continue to meet its financial obligations,” the FATF said.
“The actions of the Russian Federation unacceptably run counter to the core principles of the FATF, which aim to promote the safety, security and integrity of the global financial system,” the Paris-based group said in a statement.
The FATF on Friday also added South Africa and Nigeria to its “grey list” of countries subject to special scrutiny to implement anti-money laundering and terrorist financing standards and removed Morocco from the gray list.
FATF members include 39 countries including the United States, India, China and Saudi Arabia, as well as European countries such as the UK, Germany and France and the EU as such. Ukraine is not a member.
Reporting by Tassilo Hummel and Ingrid Melander; Additional reporting by Sudip Kar-Gupta, Karin Strohecker, Olena Harmash, Elaine Monaghan; Edited by Jane Merriman, Louise Heavens, Andrea Ricci and William Mallard
Our standards: The Thomson Portal Trust Principles.