International Cooperation on Financial Crime in Focus as Russia’s War Rages On
Two years have passed since Russia’s unprovoked invasion of Ukraine, and the global financial system remains at risk due to growing financial connectivity with countries under sanctions, proliferation financing, and malicious cyber activities. The Financial Action Task Force (FATF) is urging all jurisdictions to remain vigilant and take proactive measures to protect themselves and the international financial system.
FATF’s Concerns
Since Russia’s war on Ukraine began, FATF members have been closely monitoring the situation and its impact on global finance. Despite being a suspended member of the organization, Russia remains accountable for implementing FATF standards and must continue to meet its financial obligations.
The FATF strongly condemns Russia’s aggression against Ukraine, citing the devastating loss of lives and destruction caused by the ongoing conflict. The organization is also concerned about reports of arms trade between Russia and UN-sanctioned jurisdictions, as well as malicious cyber activities emanating from Russia.
Unacceptable Actions
Russia’s actions are deemed unacceptable, running counter to FATF core principles aimed at promoting security, safety, and integrity in global finance. The decision to suspend Russia’s membership was made due to its gross violation of international cooperation and mutual respect.
The FATF is calling on all jurisdictions to remain alert to emerging risks from circumventing measures taken to protect the financial system and take necessary steps to mitigate these risks. The organization reiterates its sympathies to the people of Ukraine, who have suffered greatly at the hands of Russia’s aggression, and hopes that 2024 will be the year they return to safety, peace, and prosperity.
Proactive Measures
In a statement released yesterday, FATF members noted with concern the potential risks to the international financial system, including:
- Growing financial connectivity of Russia with countries subject to FATF countermeasures
- Risks of proliferation financing
- Malicious cyber activities and ransomware attacks
The organization has decided to take proactive measures to protect itself and the global financial system due to the gravity of these risks.
Urgent Call to Action
The FATF is urging all jurisdictions to:
- Continue to remain vigilant and monitor the situation closely
- Consider at each Plenary meeting whether grounds exist for lifting or modifying restrictions on Russia’s membership
- Take necessary measures to mitigate emerging risks from circumventing measures taken to protect the financial system
By working together, we can ensure that the international financial system remains secure and resilient in the face of growing threats.