The Financial Action Task Force has said it has suspended Russia from its membership because of its intensifying war of aggression against Ukraine. (Alexey Furman/Getty Images)
"As a result, the FATF Plenary has today suspended the membership of the Russian Federation," the watchdog's president, T. Raja Kumar, said on Friday, referring to the organization's decision-making body. The announcement was made on the first anniversary of the invasion.
The inter-governmental body sets standards for more than 200 countries. It issues so-called gray lists and black lists of offenders that warrant monitoring, red flags that are often used by financial institutions.
Russia was suspended because the Ukraine war also runs counter to the commitment to international cooperation and mutual respect that members of the body have agreed to implement.
FATF said that the Russian Federation had intensified its inhumane and brutal attacks in the past 12 months, targeting public infrastructure. The task force said it is concerned about the reported arms trade between Russia and jurisdictions sanctioned by the United Nations, including North Korea, Iran and Sudan. FATF also pointed to malicious cyber-activity emanating from Russia.
Russia was warned it remains accountable for its obligation to implement task force standards. "The Russian Federation must continue to meet its financial obligations," the organization said.
"One year after the Russian Federation's illegal, unprovoked and unjustified full-scale military invasion of Ukraine, the FATF reiterates its deepest sympathies for the people of Ukraine and continues to deplore the huge loss of lives and malicious destruction caused by the Russia Federation's ongoing brutal attack on Ukraine," the body said in its statement.
Ukraine's finance minister, Serhiy Marchenko, said the suspension is "a clear signal that all actors must exercise extreme caution when attempting any transactions with the Russian financial system.
"We will continue the dialog with FATF members to ensure Russia's inclusion on the FATF black list in the future as part of our work to help protect the global financial system and restrict the access of the Russian military dictatorial regime to the global economy," he said.
FATF took the preliminary step in October 2022 of barring Russia from taking part in its projects or as a member at meetings of regional bodies. North Korea and Iran had already been subject to sanctions as well as being blacklisted by FATF.
The task force said on Friday that Russia will remain in its broad global network as an active member of the Eurasian Group on Money Laundering. Its membership includes China and India as well as some former Soviet Union countries.
Regional bodies do not have the status of the body's 39 members, who set its international standards and which include the now-suspended Russia.
The global watchdog said Friday it will "monitor the situation and consider at each of its plenary meetings whether the grounds exist for lifting or modifying these restrictions."
The watchdog also announced that it has added Nigeria and South Africa to its gray list, which includes jurisdictions subject to increased monitoring.
--Editing by Ed Harris.
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