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Financial crime watchdog FATF suspends Russia's membership over Ukraine war

The FATF on Friday suspended Russia's membership for its "illegal, unprovoked and unjustified" full-scale military invasion of Ukraine, an official statement said

Russian President Vladimir Putin

Russian President Vladimir Putin (Photo: Bloomberg)

The 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. 

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. 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.

South Africa, Nigeria on dirty-money grey list

South Africa and Nigeria have been placed on a global financial watchdog’s so-called grey list denoting nations with shortcomings in tackling illicit financial flows, a move that scars their international reputations and may raise costs for banks and asset managers. 

The decisions were announced by the FATF on Friday. Morocco and Cambodia were taken off the list after improving their controls. It also said Qatar's technical compliance with its standards was very strong but the Gulf state needed to make improvements in its fight against money laundering, terrorism financing. 

Poland sends tanks, Ukraine mourns but vows to fight

Ukrainians paid tribute to fallen on Friday and vowed to fight on to victory, while Russia said its forces were making gains in battle in the east as its invasion entered a second year with no end in sight. Meanwhile, Poland sent its first four Leopard 2A4 battle tanks to Ukraine and German Defence Minister Boris Pistorius decided on Friday to hand over another four Leopard 2 A6 battle tanks from German military stocks to Ukraine.

China calls for peace, proposal falls flat with US, allies 

China called for a cease-fire in Ukraine in a bid to portray itself as a neutral actor that can help end Russia’s year long war. 

It was quickly dismissed by Kyiv’s allies as the conflict enters its second year. Several of the 12 points  if carried out, offer clear benefits to Russia. Nato Secretary General Jens Stoltenberg said, “China doesn’t have much credibility” in light of its failure to condemn Russia’s war.

China’s 12-point road to peace

1. Respecting the sovereignty of all countries
2. Abandoning the Cold War mentality
3. Ceasing hostilities
4. Resuming peace talks
5. Resolving the humanitarian crisis
6. Protecting civilians and prisoners of war 
7. Keeping nuclear power plants safe
8. Reducing strategic risks

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Feb 24 2023 | 9:12 PM IST

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