Ukraine Urges FATF Action Against Russia

In a joint appeal, the Ministry of Finance of Ukraine and the Financial Monitoring Service of Ukraine have called on the Financial Action Task Force (FATF) to address Russia’s escalating efforts to undermine global financial security and its strengthening ties with Iran and North Korea. 

The upcoming FATF plenary meeting in Paris from 19-23 February presents an opportunity to blacklist Russia. A year ago, the FATF suspended Russia for violating core principles, expressing concerns about arms trade with UN-sanctioned states and cyber activities.  

Russia’s utilization of North Korean ballistic missiles in Ukraine violates UN sanctions and FATF principles. Additionally, the country relies on Iranian drones to intensify attacks on Ukrainian civilians. Establishing a joint payment system with Iran to bypass SWIFT, linking banking systems, and potential collaboration with Myanmar signal Russia’s growing financial cooperation with FATF-blacklisted states. 

Minister of Finance Sergii Marchenko emphasized, “Russia’s increased cooperation with Iran and North Korea has given them a backdoor entry into the global financial system.” Urging FATF to blacklist Russia, Marchenko warns of the heightened risks to the international financial system. Failure to act could jeopardize global economic safety and compromise progress in the fight against money laundering, terrorism financing, and proliferation. 

Head of the State Financial Monitoring Service of Ukraine, Igor Cherkaskyi, highlighted Russia’s deliberate non-compliance with FATF principles, citing increasing non-transparency and persistent malicious cyber activities. Cherkaskyi expressed confidence in FATF treating the issue urgently during the upcoming plenary to safeguard global financial security. 

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