Russia’s membership in the FATF has been suspended. Results of the FATF Plenary meeting with the participation of the SFMS

During February 20-24, the SFMS, with the support of the EU Anti-Corruption Initiative in Ukraine (EUACI) project, participated in the FATF Working groups meetings and the Plenary meeting, which took place in Paris, French Republic.

During the Plenary meeting, a number of issues related to the global AML/CFT/CPF measures taken by the FATF and its members have been discussed, namely:

-         Working groups’ activity reports (ICRG, GNCG, RTMG, ECG);

-         application of sanctions to the RF by the FATF;

-         mutual evaluation reports of Indonesia and Qatar; etc.

As a result of considering the imposing sanctions on the RF, the FATF issued a relevant Statement, which is posted on its official website.

The FATF reiterated its deepest sympathies for the needless loss of life, suffering and destruction caused by the ongoing Russian invasion of Ukraine.

The FATF strongly condemns the war of aggression waged by the RF against Ukraine. Over the past year, the RF has intensified its inhumane and brutal attacks targeting public critical infrastructure.

The FATF is also deeply concerned about reports of arms trade between the RF and countries against which the UN Security Council has applied sanctions and cyber-attacks that took place from the territory of the RF.

The FATF stated that RF’s actions unacceptably run counter to the FATF core principles aiming to promote security, safety, and the integrity of the global financial system. They also represent a gross violation of the commitment to international cooperation and mutual respect upon which FATF Members have agreed to implement and support the FATF Standards. Considering the above, the FATF has decided to strengthen sanctions against the RF suspending its membership. At the same time, the RF must fulfil its obligations regarding the implementation of the FATF Standards.

Following the statements issued in March, April, June and October 2022, the FATF reiterates that all jurisdictions should be alert to possible emerging risks from the circumvention of measures taken in order to protect the international financial system and take the necessary measures to mitigate these risks.

After the FATF Plenary meeting, the Head of the State Financial Monitoring Service of Ukraine, Igor Cherkaskyi, noted:

«The international community in the face of the FATF is significantly increasing its pressure on the RF. The RF’s membership in the FATF is suspended. The aggressor country must bear responsibility for all the horrors that the peaceful civilians of Ukraine are suffering from and for the war’s colossal negative impact on the entire global financial system and security. We conveyed the reasoned position of Ukraine in this regard to the delegations of the FATF member countries. International partners have confirmed their continued support for Ukraine and focusing efforts on finding consensus to promote more rigorous decisions».

The SFMS continues to take measures to further isolate the RF in the area of financial monitoring and imposing sanctions.