Ukraine suffered a setback in its efforts to get Russia included in the Financial Action Task Force (FATF) ‘blacklist’ after the move found no support among several key nations, including India, China, Saudi Arabia, and South Africa.
This was Ukraine’s second attempt to get Russia included in the blacklist.
Inclusion on the FATF blacklist signifies serious deficiencies in a country’s systems to battle money laundering and financing of terrorism. It can lead to economic sanctions, restricted access to international finance, increased scrutiny, reputational damage, and diplomatic pressure.
Earlier this week, during discussions held in Paris by the international financial crime watchdog Financial Action Task Force (FATF), Brazil was among the countries that rejected a proposal put forward by Ukraine, according to Reuters, two sources familiar with the matter said on Friday.
Another source added that Ukraine’s suggestion to exclude Russia was delayed to gather additional evidence.
The FATF, whose member states include major economies such as the United States, Britain, France, and Germany, refrained from commenting, stating that it would provide an update on its “grey” and “blacklisted” nations following the conclusion of its plenary discussions on the day.
Ukraine’s government has argued that Russia poses a threat to the international financial system, citing its close ties to other “blacklist” countries such as Iran and North Korea, among other arguments.
The Ukrainian government has also pointed to the various sanctions imposed on Russia by Western governments in response to its 2022 invasion of Ukraine.
Last year, the FATF suspended Russia’s membership, stating that Moscow’s war in Ukraine violated the organisation’s principles.
Earlier in the day, the FATF, a global financial crime watchdog also announced that it has removed Senegal from its list of countries under increased scrutiny, while adding Algeria, Angola, Ivory Coast, and Lebanon.
Senegal had made significant progress in implementing measures to combat money laundering and “terrorism financing,” the watchdog said in a statement.