Financial Crime World

Title: FATF Evaluates Russia’s Anti-Money Laundering & Counter-Terrorist Financing System: Key Findings and Recommendations

Background

The Financial Action Task Force (FATF) in collaboration with the Eurasian Group and MONEYVAL conducted a comprehensive assessment of Russia’s anti-money laundering and counter-terrorist financing (AML/CFT) system. The evaluation aimed to evaluate the effectiveness of Russia’s measures and their adherence to the FATF Recommendations.

Scope of the Assessment

The assessment covers various aspects, including risks associated with United Nations and domestically designated terrorists and terrorist organizations. It’s important to note that the report does not delve into the justifications for domestic designations.

FATF Recommendations Addressed

  • R.1 to R.40

Assessment Results

The assessment results will be released in the upcoming Russian Federation Mutual Evaluation Report for 2019. Preliminary Indicative Outcomes (IO) for select Recommendations are:

  • IO1, IO2, and IO3: Substantial Progress
  • IO4: Compliant
  • IO5: Non-Compliant
  • IO6: Not Yet Assessed
  • IO7: Partially Compliant
  • IO8: Compliant
  • IO9: Non-Compliant
  • IO10: Compliant

Stay Tuned

Further updates on the Russian Federation Mutual Evaluation Report for 2019 will be provided as they become available.

FATF Recommendations

  1. Assessing risk and applying a risk-based approach (R.1)
  2. National cooperation and coordination (R.2)
  3. Money laundering offense (R.3)
  4. Confiscation and provisional measures (R.4)
  5. Terrorist financing offense (R.5)
  6. Targeted financial sanctions related to terrorism and terrorist financing (R.6)
  7. Targeted financial sanctions related to proliferation (R.7)
  8. Non-profit organizations (R.8)
  9. Financial institution secrecy laws (R.9)
  10. Customer due diligence (R.10)
  11. Record keeping (R.11)
  12. Politically exposed persons (R.12)
  13. Correspondent banking (R.13)
  14. Money or value transfer services (R.14)
  15. New technologies (R.15)
  16. Wire transfers (R.16)
  17. Reliance on third parties (R.17)
  18. Internal controls and foreign branches and subsidiaries (R.18)
  19. Higher-risk countries (R.19)
  20. Reporting of suspicious transactions (R.20)
  21. Tipping-off and confidentiality (R.21)
  22. Designated Non-Financial Business and Professions (DNFBPs): Customer due diligence (R.22)
  23. DNFBPs: Other measures (R.23)
  24. Transparency and beneficial ownership of legal persons (R.24)
  25. Transparency and beneficial ownership of legal arrangements (R.25)
  26. Regulation and supervision of financial institutions (R.26)
  27. Powers of supervisors (R.27)
  28. Regulation and supervision of DNFBPs (R.28)
  29. Financial intelligence units (R.29)
  30. Responsibilities of law enforcement and investigative authorities (R.30)
  31. Powers of law enforcement and investigative authorities (R.31)
  32. Cash couriers (R.32)
  33. Statistics (R.33)
  34. Guidance and feedback (R.34)
  35. Sanctions (R.35)
  36. International instruments (R.36)
  37. Mutual legal assistance (R.37)
  38. Mutual legal assistance: freezing and confiscation (R.38)
  39. Extradition (R.39)
  40. Other forms of international cooperation (R.40)