Ashish Ranjan
FATF suspends Russia’s membership: Friday, the Financial Action Task Force (FATF) suspended Russia’s membership, citing Moscow’s war in Ukraine as a violation of the organization’s principles.
FATF is an intergovernmental organisation created to combat money laundering and the financing of terrorism by establishing global standards and ensuring their observance.The Paris-based group said in a statement that the Russian Federation’s actions run counter to the FATF’s core principles, which seek to promote security, safety, and the integrity of the global financial system.
“They also constitute a flagrant violation of the FATF members’ commitment to international cooperation and mutual respect,” the report continued.Ukraine applauded the decision to suspend Russia, but added that it will continue to work with FATF members to blacklist and sanction Russia.
“It’s not enough, but it’s an important step in the correct direction,” said Serghiy Marchenko, the Ukrainian minister of finance.Ukraine has repeatedly demanded Russia’s exclusion from international and intergovernmental organisations in an effort to exert pressure on Moscow, whose invasion of Ukraine entered its second year on Friday.
Even though Russia is currently suspended, it remains a member.”The Russian Federation is still responsible for implementing the FATF Standards. The Russian Federation must continue to fulfil its financial responsibilities “FATF stated.
Separately, the FATF added South Africa to its “grey list” of countries subject to special scrutiny to implement standards to prevent money laundering and terrorism financing on Friday, while removing Morocco from the list.
FATF members include the United States, India, China, Saudi Arabia, as well as European countries such as the United Kingdom, Germany, and France, as well as the EU as a whole. Ukraine does not belong.
As a result of the Paris-based organization’s expansion to include South Africa and Nigeria, clients of financial institutions in these nations may also be subject to increased due diligence checks in international banking and finance.
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When it comes time to seek credit or borrow from multilateral organisations and international financial institutions, the effects will also be felt at the state level.
The South African Treasury attempted to minimise the impact, arguing that the country’s grey listing would have limited effects on financial stability and business costs.
