Financial Crime World

Title: Angola’s ESAAMLG Summit: Russia’s Bid for Observer Status Amidst Financial Crimes Discussions

Overview

Between April 6 to 13, 2023, the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) will hold its biannual summit in Lubango, Angola. This event brings together 19 countries, such as Kenya, Namibia, and South Africa, with the primary goal of strengthening financial crime countermeasures in the region.

Agenda and Topics

The summit agenda includes several topics, with some being routine discussions:

  1. Late membership fees
  2. Cross-border illicit cash flows
  3. Assessments of members’ adherence to FATF (Financial Action Task Force) standards

However, a new and intriguing topic emerges - the potential inclusion of Russia as an observer in the group. Let’s explore the implications of this development.

Russia’s Pursuit of Observer Status in ESAAMLG

Russia’s delegation intends to secure observer status in ESAAMLG alongside established members like Britain, the International Monetary Fund (IMF), and other organizations. According to European sources, “the Russians have identified the FATF system as something they can still influence. Getting observer status … allows them to set the agenda, make their case, and basically be in the room.”

Despite Russia’s recent suspension from FATF due to its invasion of Ukraine and dealings with blacklisted nations, observer status in ESAAMLG could restore Moscow’s influence within the broader anti-money laundering framework. Here’s why:

  1. Operational Independence: ESAAMLG operates independently from FATF, providing Russia with an opportunity to maintain links.
  2. Current Influence: Russia currently holds observer status in the Middle East and North Africa FATF.

Opposition to Russia’s Move

However, not all countries and organizations welcome Russia’s move. Russian authorities blocked European speakers, including the source close to FATF, from addressing the MENA FATF summit in Mauritania last December. This incident suggests that Russia maintains considerable influence within the regional affiliate, despite FATF’s restrictions.

Implications and Way Forward

FATF is currently deliberating whether to place Russia on its gray list or blacklist of high-risk jurisdictions due to evidence of continuous financial crimes. Facing these potential sanctions, Russia is expanding its presence in allies’ regional affiliates to counteract further restrictions.

The outcome of Russia’s bid for observer status in the Angola summit remains uncertain. Observers will closely monitor the summit and the role of Russia’s influence within the larger anti-money laundering regime.

Some key points to consider:

  1. Russia’s motivation for seeking observer status
  2. ESAAMLG’s organizational independence from FATF
  3. Russia’s past and present influence within the regional affiliate
  4. Impact of Russia’s move on the global anti-money laundering framework