FATF suspends Russia's membership over Ukraine war

Global financial crime watchdog Financial Action Task Force (FATF) on Friday suspended Russia's membership for its "illegal, unprovoked and unjustified" full-scale military invasion of Ukraine, an official statement said. Russia's actions were "unacceptably run" counter to FATF's core principles that aims to promote security, safety, and integrity of the global financial system, it said.

One year after Russia's illegal, unprovoked and unjustified full-scale military invasion of Ukraine, FATF reiterates its deepest sympathies for the people of Ukraine and continues to deplore the huge loss of lives and malicious destruction caused by Russia's ongoing "brutal attack" on Ukraine, said the statement issued after the FATF plenary held in Paris.

"Strongly condemning" its "war of aggression" against Ukraine, the FATF said over the past year, Russia has "intensified its inhumane and brutal attacks" targeting critical public infrastructure, the statement said.

The global watchdog on terror financing said it is also deeply concerned by the reports of arms trade between Russia and United Nations sanctioned jurisdictions, and malicious cyber-activities emanating from Russia.

Russian's actions unacceptably run counter to the FATF core principles aiming to promote security, safety, and the integrity of the global financial system and 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, it said.

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"Considering the above, the FATF has decided to suspend the membership of the Russian Federation. The Russian Federation remains accountable for its obligation to implement the FATF standards.

"The Russian Federation must continue to meet its financial obligations. The Russian Federation will remain a member of the Global Network as an active member of the Eurasian Group on Money Laundering (EAG) and retain its rights as an EAG member," the statement said.

The financial crime watchdog said it will monitor the situation and consider at each of its plenary meetings whether the grounds exist for lifting or modifying these restrictions. 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 the Russian Federation's war against Ukraine.

"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," the statement said.

The FATF said it was expressing its sympathies to the people of Ukraine, who have "borne a terrible burden" at the hands of the Russia's "war of aggression" and the FATF reflects the thoughts of the "entire international community" in hoping that this is the year that returns them to safety, peace, and prosperity.