FATF suspends Russia’s membership due to Ukraine war

• Global anti-money laundering watchdog the Financial Action Task Force has suspended Russia’s membership over Moscow’s invasion of Ukraine.
  • Although suspended, Russia remains a FATF member.
• However, it will be barred from attending meetings and accessing documents.
• Also, FATF updated its list for Jurisdictions Under Increased Monitoring (i.e. Grey list) and High-Risk Jurisdictions (i.e. Black List).

About FATF

• FATF, established in 1989, is an inter-governmental body (India a member) that leads global action to tackle money laundering, terrorist and proliferation financing.
• Headquarters- Paris.
• The FATF sets international standards for more than 200 countries and jurisdictions and seeks to help authorities tackle serious crime including drug smuggling, human trafficking and terrorism.
• FATF lists
  • Grey list
    • Countries that are actively working with FATF to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing.
    • Countries in grey list may face: Economic sanctions (from IMF, World Bank etc); Problem in getting loans from IMF, World Bank etc.; Reduction in international trade; International boycott etc.
    • UAE, Turkiye, Jordan, South Africa and 20 other nations are in Grey List.

• Black list
  • Countries that FATF considers non-cooperative in global effort to combat money laundering terrorist financing, and financing of proliferation.
  • Myanmar along with Iran and North Korea continue to be in Black list.