there are no objective grounds for exclusion of the Russian Federation from the FATF – Kommersant

There are no objective grounds for including the Russian Federation on the blacklist of the Financial Action Task Force (FATF), but if a “politically motivated decision is made, then, of course, this will complicate payments,” said Elvira Nabiullina, Chairman of the Bank of Russia. According to her, the deadlines for compliance may increase, “there may be some refusals to make payments, in addition to what is now,” she said.

“We are trying to carry out communications as much as possible, we are explaining our position, including, first of all, the position that there are no objective grounds for excluding us from the FATF,” commented the head of the Central Bank.

The adoption of such a decision, according to her, will worsen foreign trade activity, but will not stop trade relations in general. For large export items, according to her, there will be no strong negative impact on foreign trade volumes, but compliance costs will increase. First of all, this will affect the system of international settlements: “Rather, the actions will be taken by the financial institutions of the countries with whom we trade, on our part, it is mainly to look for more alternatives for settlements.”

Ms. Nabiullina also recalled that in 2019, the FATF completed an audit of the Russian anti-money laundering system, and it was recognized as “quite effective”. This system continues to operate, in addition, the Bank of Russia has introduced the Know Your Customer platform. This is an automated solution that allows you to use the information of all participants in the financial market to identify suspicious persons.

Earlier, Bloomberg, citing sources, reportedthat Russia appealed to 12 states outlining the negative consequences that the inclusion of the country on the FATF black list would entail. The next meeting will be held in Paris on June 19-23.

Previously FATF in a statement on February 24, 2023 dismissed Russia, which has been a member of the organization since 2003, from membership due to hostilities on the territory of Ukraine.

Rosfinmonitoring then called the decision politicized, specifying that the suspension of Russia’s membership in the FATF does not entail any obligations and restrictions for Russian financial institutions. The FATF is an interstate organization founded in France in 1989.

Olga Sherunkova