With the assistance and consent of the MONEYVAL Committee during June 13-17, the SFMS’s representatives took part in the regular FATF Plenary meeting held in the “hybrid” format in Berlin, Germany.

The Plenary has considered a number of issues related to the global AML/CFT measures taken by FATF and its member-states, namely:

-         The working group reports (ICRG, GNCG, RTMG);

-         Membership status of Russian Federation (RF) and its sanctioning by the FATF;

-         Report on the illegal arms trafficking and terrorism;

-         Guidance on UBO;

-         Review of the Recommendation 25 regarding transparency and beneficial ownership of legal arrangements;

-         Mutual Evaluation Reports of Netherland and Germany etc.

Following the results of the discussion on the RF membership issue, the FATF has adopted the relevant Statement published on the FATF official website.

According to the Statement, the FATF again expresses its deepest sympathies for the people of Ukraine and continues to deplore the huge loss of life and needless destruction caused by the ongoing Russian invasion. The Russian actions 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 upon which FATF Members have agreed to implement and support the FATF Standards.

As a result of the invasion, FATF members have agreed to severely limit the RF’s role and influence within the body. FATF members have decided that Russia will no longer hold any leadership roles in the FATF and will have its participation in decision-making on standard-setting, FATF evaluations and other important matters severely restricted. The RF will also no longer provide assessors, reviewers or other experts for FATF peer-review processes.

Following statements in March and April, the FATF continues to call upon all jurisdictions to remain vigilant of threats to the integrity, safety and security of the international financial system arising from RF’s aggression in Ukraine.

The FATF reiterates that all jurisdictions should be vigilant to possible emerging risks from the circumvention of measures taken in order to protect the international financial system.

Since the FATF Mandate provides that all FATF decisions are adopted by consensus (and not by the simple majority), the issue of RF inclusion on the sanction list FATF continues to be discussed by the member countries and observers. It will be considered within the framework of the following FATF activities.

Following the results of the Plenary Meeting, Head of the SFMS Igor Cherkaskyi noted: “The decisions made by the FATF demonstrate consistent position on the decreasing RF influence on the managing processes of AML/CFT Global Network development and functioning. At the Plenary, we presented very clearly Ukrainian arguments on the need to further sanctioning country-aggressor and agreed on the future steps in this regard.”

Participation of the SFMS in the events under the auspices of FATF is especially relevant in the period of RF war against Ukraine as it makes it possible to engage the international community to bring RF to justice for the crimes committed against Ukrainian people.

The SFMS continues to work with international partners to further isolate RF in the area of financial monitoring and its sanctioning.