Speculation surrounds the possibility that the Financial Action Task Force may move Russia onto its blacklist in the near term. A confidential document in the hands of a major publication describes Kyiv’s push to designate Moscow as a high‑risk jurisdiction.
The FATF plenary to decide on such a designation is scheduled for October 22.
Kyiv’s latest effort could gain traction; if confirmed, Russia would join Iran, North Korea, and Myanmar on the FATF list of highest‑risk countries.
The report notes that adding the Russian Federation to the blacklist requires the consensus of FATF member states, a standard condition for changes in status.
What is FATF?
The Financial Action Task Force on Money Laundering is an intergovernmental body that sets global standards to combat money laundering, the financing of terrorism, and the proliferation of weapons of mass destruction.
It was created in 1989 by the decision of the Group of Seven, and its headquarters are in Paris.
Being blacklisted or greylisted by the FATF can seriously damage a country’s financial reputation and is widely regarded as economically disastrous for most states.
What is Russia accused of?
The document points to Russia’s extensive financial and military ties with high‑risk states such as North Korea and Iran as a potential reason for blacklisting.
It also notes alleged illegal activities and the financing of private militias such as the Wagner Group.
Russia is accused of using the Telegram messaging app and cryptocurrencies to fund terrorism and to launder money from the sale of goods seized during the invasion of Ukraine, including grain and minerals.
The FATF list classifies countries with serious deficiencies in anti‑money‑laundering and counter‑terrorist‑financing systems as high risk, signaling elevated exposure for international finance in those jurisdictions.
Countries that comply with FATF recommendations must thoroughly verify all transactions from blacklisted jurisdictions and, in some cases, may implement countermeasures to protect their financial systems and restrict payments sourced there.
Officials warned that such a move would complicate payments by extending compliance timelines and could lead to denials of certain transfers beyond what is happening today.
As noted by central bank leadership, foreign trade activity could suffer, though it is unlikely that trade volumes of major items would collapse in the short term.
Russia’s FATF membership has been suspended
Russia’s FATF membership was suspended in February 2023. Official action later clarified that this suspension imposes no formal obligations or restrictions on financial institutions in Russia or abroad.
To date, the FATF has not downgraded Russia.
Meanwhile, Ukraine has intensified its campaign to shift that assessment, pushing for stronger monitoring and alignment with FATF standards.
In 2023, Russia warned at least a dozen countries about the consequences of its possible inclusion on the FATF blacklist, a posture described by some observers as a strategic signaling move.
Russian officials have rejected the idea of a definite black mark, arguing the situation is highly politicized and expressing hope that the matter will be resolved in a favorable manner, insisting that there is no clear white or black designation in practice.