Financial Crime World

Financial Crime and Terrorism Financing on the Rise in Russian Federation, Warns International Community

The Financial Action Task Force (FATF) has issued a warning about the growing risks of financial crime and terrorism financing emanating from the Russian Federation, two years since Russia’s unprovoked war against Ukraine.

Rising Concerns

FATF members have expressed concern over:

  • The increasing financial connectivity between Russia and countries under international sanctions
  • The risks of proliferation financing and malicious cyber activities

Many FATF member countries are taking proactive measures to protect themselves and the global financial system against these threats. The organization has called upon all jurisdictions to remain vigilant and take necessary measures to mitigate the risks posed by Russia’s actions.

Key Concerns

The FATF has condemned Russia’s war of aggression against Ukraine, citing reports of:

  • Attacks on critical public infrastructure
  • Arms trade between Russia and sanctioned jurisdictions
  • Malicious cyber activities emanating from Russia

Consequences

As a result of its failure to implement international standards aimed at promoting security, safety, and integrity in the global financial system, the FATF has suspended Russia’s membership. However, Russia remains accountable for its obligation to implement these standards and must continue to meet its financial obligations.

International Community’s Response

The international community is urging all jurisdictions to remain vigilant of threats to the integrity, safety, and security of the global financial system arising from Russia’s actions. The FATF reiterates its sympathies to the people of Ukraine, who have borne a terrible burden at the hands of Russia’s war of aggression.

Next Steps

The FATF will continue to monitor the situation and consider lifting or modifying restrictions on Russia at each of its plenary meetings. The organization is committed to ensuring that the global financial system remains safe and secure for all countries and individuals.