In a critical development at the ongoing Financial Action Task Force on Money Laundering (FATF) meeting in Paris, Russia faces the possibility of being added to the organization's blacklist, as reported by Meduza. This move, if implemented, could have severe financial ramifications for the country.
The FATF, the leading international group dedicated to combating money laundering and terrorist financing, is currently convening in Paris from June 19 to June 23. One of the key items on the agenda is the examination of fresh sanctions targeting Russia, which pose a significant threat to its financial isolation.
Despite Russia's suspension from the FATF since February 2022, Ukraine has formally requested the inclusion of Russia on the organization's blacklist. If approved, financial transactions with Russia would be treated as high-risk, similar to transfers involving North Korea or Iran.
Countries listed on the FATF blacklist either refuse to cooperate with the organization or have inadequate measures in place to combat financial crimes. As of February 2023, the blacklist comprises only three nations: North Korea, Iran, and Myanmar.
Experts anticipate that countries may hesitate to engage in financial dealings with a blacklisted country. Economist Otabek Bakirov warns that Russia's inclusion on the FATF blacklist would adversely impact the economies of nations reliant on Russia for economic integration, investments, bilateral trade, and national revenue. He emphasizes the need for prompt action to mitigate potential consequences.
The FATF's final decision regarding Russia's status on the blacklist is expected to be announced at the conclusion of the Paris meeting. If Russia is included, it could face significant challenges in conducting international financial transactions, potentially leading to economic strains for both Russia and its trading partners.
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