Reports indicate Brussels is considering adding Russia to its “grey list” for anti-money laundering.
According to the Financial Times, the EU is weighing the addition of Russia to its anti-money laundering “grey list” to damage the country’s reputation and increase financial pressure.
This list identifies nations with insufficient safeguards against illicit financial activities. Inclusion would mean stricter compliance requirements for banks and financial institutions dealing with Russian entities and individuals, raising the cost of doing business.
The European Commission is expected to release an updated list of high-risk third countries next week, the FT notes, after a last-minute postponement due to “administrative/procedural reasons.”
Markus Ferber, a German MEP from the European People’s Party, stated that ”There is huge support for putting Russia on the list,” according to the report.
The EU typically aligns its blacklist with decisions made by the Financial Action Task Force (FATF), a global body focused on combating money laundering and terrorist financing.
While Russia’s FATF membership is suspended since 2023, several countries would likely oppose formally adding it to the FATF grey list, prompting Brussels to consider acting independently.
Despite the FATF suspension, Russia participates in the Eurasian Group (EAG), a regional organization linked to FATF. In 2024, the EAG reviewed Russia’s progress in strengthening measures against money laundering and terrorist financing, acknowledging some progress but calling for further action, especially in enforcing financial sanctions and improving transparency of beneficial ownership.
Ukraine has consistently advocated for Russia’s inclusion on the FATF blacklist, citing its connections to already blacklisted nations and potential threats to the global financial system. However, resistance from FATF member states, including China, India, Saudi Arabia, and South Africa, has hindered these efforts.
Despite its suspension, Russia must still adhere to FATF standards and maintain its financial obligations to the organization.
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