The State Finance Monitoring Service of Ukraine prepares for the next FATF Plenary meeting

During 21-25 October this year the State Financial Monitoring Service of Ukraine (under the quota of the MONEYVAL Committee of the Council of Europe and with the support of the EU Anti-Corruption Initiative in Ukraine (EUACI) project) will participate in the FATF Plenary and Working Group Meetings, which will be held in Paris (French Republic).

 

Ukraine and its partners have repeatedly drawn and continue to draw the FATF’s attention to the growing risks and threats provoked by the Russian Federation due to its bloody war against Ukraine.

 

According to the official information of the FATF following the results of the previous Plenary meeting, the suspension of the membership of the Russian Federation continues to stand. Following the statements issued since March 2022, the FATF reiterates that all jurisdictions should be vigilant to current and emerging risks from the circumvention of measures taken against the Russian Federation in order to protect the international financial system.

 

We remind you that as a result of the Plenary meeting in February this year, the FATF adopted a relevant Statement, according to which FATF members note with concern the potential risks to the international financial system, including growing financial connectivity of Russia with countries subject to FATF countermeasures, risks of proliferation financing, and malicious cyber activities and ransomware attacks. Due to the gravity of these risks, many FATF members are taking proactive measures to protect themselves and the global financial system.

 

One of the important issues discussed by the FATF at the previous meeting was the increase in risks emanating from the Democratic People’s Republic of Korea (DPRK). The FATF issued an updated statement in which, given the increased risks of proliferation financing, it reiterated its call for countermeasures against high-risk jurisdictions (DPRK, Iran). The full text of the statement can be found at the link.

 

It is important to emphasise that this is especially relevant given the numerous evidences of growing cooperation between Russia and the DPRK (strategic military and economic partnership).

 

During the meeting in Paris, one of the key issues should be containment of Russia’s growing efforts to strengthen its connectivity with the DPRK, which have direct signs of violations of UN Security Council Resolutions and, therefore, certain FATF Recommendations, and which have moved from covert to open and, moreover, formalised.

 

In this regard, on the eve of the FATF meetings, the Ministry of Finance of Ukraine together with the State Financial Monitoring Service of Ukraine have issued a relevant press release calling upon the FATF to take appropriate measures to protect the security of the global financial system and to blacklist Russia at the next Plenary meeting. The press release can be reached here.

 

“Russia’s clear non-compliance with FATF’s standards must be addressed. Through its persistent dealings with blacklisted countries and lack of transparency, the risks russia poses to the functioning of the global economy are growing daily. FATF’s only appropriate course of action is to blacklist russia,” Igor Cherkaskyi, Head of the State Financial Monitoring Service of Ukraine.