Financial Crime World

Title: FATF Evaluates Russian Federation’s Progress in Anti-Money Laundering and Counter-Terrorist Financing Measures

The Financial Action Task Force (FATF) has published a follow-up report on the Russian Federation’s implementation of its recommendations to combat money laundering and terrorism financing. Here’s a summary of the country’s progress and areas for improvement:

FATF Ratings

The ratings reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations. Rating categories are ‘Compliant’ (C), ‘Largely Compliant’ (LC), ‘Partially Compliant’ (PC), and ‘Non-Compliant’ (NC).

Russian Federation’s Progress

The Russian Federation shows mixed results according to the latest report. Below is a summary of how the country is faring in several key areas:

  • Risk Assessment (R.1): Largely Compliant
  • National Cooperation and Coordination (R.2): Largely Compliant
  • Money Laundering Offence (R.3): Largely Compliant
  • Terrorist Financing Offence (R.5): Partially Compliant
  • Targeted Financial Sanctions related to Terrorism & Terrorist Financing (R.6): Largely Compliant
  • Targeted Financial Sanctions related to Proliferation (R.7): Largely Compliant
  • Politically Exposed Persons (R.12): Partially Compliant

Areas of Non-Compliance

The Russian Federation demonstrates non-compliance in the following areas:

  • Non-profit Organisations (R.8): Non-Compliant
  • Transparency and Beneficial Ownership of Legal Persons (R.24): Non-Compliant
  • Transparency and Beneficial Ownership of Legal Arrangements (R.25): Non-Compliant
  • Regulation and Supervision of DNFBPs (R.28): Non-Compliant

Recommendations Shows Progress

The Russian Federation has shown progress in several recommendations, including:

  • Reporting of Suspicious Transactions (R.20): Partially Compliant
  • Transparency and Beneficial Ownership of Legal Persons and Arrangements: Work in Progress

Encouragement and Next Steps

The FATF encourages Russia to strengthen its legislative framework and regulatory regime, focusing on:

  1. Improving the legal framework related to Designated Non-Financial Business and Professions (DNFBPs)
  2. Enhancing access to beneficial ownership information
  3. Expanding measures to address the risk of terrorist financing

Other Jurisdictions’ Call to Action

The FATF reaffirms its call on other jurisdictions to apply counter-measures to protect their financial sectors from the ongoing money laundering and terrorism financing risks emanating from the Russian Federation.

The international organization will assess the progress of the Russian Federation in the upcoming year and encourages them to make significant strides in implementing the necessary reforms to mitigate these risks.