The FATF Plenary confirmed potential RF’s risks for the global financial system and extended suspension of RF’s membership in the FATF

On February 19-23, 2024, the SFMS, under the quota of the Council of Europe's MONEYVAL Committee and with the support of the EU Anti-Corruption Initiative in Ukraine (EUACI) project, took part in the regular FATF Plenary meeting and the relevant Working Groups’ meetings held in Paris, France.

These meetings took place on the eve of the second anniversary of the unprovoked, full-scale and bloody invasion of Ukraine by the RF.

During the FATF Plenary week, a number of issues related to global AML/CFT/CPF measures taken by the FATF and its members were considered.

It was important for Ukraine to consider further sanctions against the RF for its violation of the AML/CFT/CPF Standards, which create daily growing risks and threats as a result of its ongoing bloody aggression against Ukraine.

Following the Plenary meeting, the FATF issued a Statement, which is available on its official website.

According to the Statement, FATF members note with concern the potential risks to the international financial system, including the 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.

The FATF calls upon all jurisdictions to continue to remain vigilant due to the above-mentioned risks. As they have done since the Russian Federation commenced its war of aggression, FATF members will continue to monitor the situation and the risks posed to the global financial system. As a suspended member of the FATF, the Russian Federation still remains accountable for its obligation to implement the FATF Standards.

Also, taking into account the second anniversary of the beginning of the Russian aggression against Ukraine, the FATF recalls its Statement of 24 February 2023.

In the framework of the meetings, the SFMS held significant number of bilateral meetings with delegations of the FATF member states and other participants of the Plenary, where further joint actions to protect the international financial system, including from the risks posed by the RF were discussed.

At the end of the FATF Plenary meeting, the Head of the State Financial Monitoring Service of Ukraine, Igor Cherkaskyi, noted the unity of the positions of member states delegations on the upholding the decision to suspend RF's membership in the FATF. Igor Cherkaskyi also expressed his gratitude for the progress and confirmed that the work on studying the risks and threats posed by the RF to the global financial system continues. Communication with the FATF regarding the appropriate response will also be implemented.

The State Financial Monitoring Service of Ukraine will continue to take measures to respond to the risks and threats posed by the RF in the area of money laundering, terrorist financing and financing the proliferation of weapons of mass destruction, as well as to impose sanctions on the aggressor country.