FATF Considers Blacklisting Russia Amid Pressure from Ukraine

The Financial Action Task Force (FATF) is set to weigh the possibility of blacklisting Russia, following strong pressure from Ukraine. If implemented, this move would make Russia one of only four countries with such a designation, significantly damaging its reputation with international investors.

According to a report by *Politico*, Ukrainian officials are advocating for the issue to be formally addressed during the upcoming FATF plenary, scheduled for next week. The Paris-based FATF, which sets global standards for anti-money laundering (AML) measures, suspended Russia from its membership in 2023. However, it has yet to add Russia to its blacklist—a move that would require jurisdictions worldwide to enforce enhanced due diligence when conducting financial dealings with the country. Being blacklisted would also deliver a severe blow to Russia’s standing in the international financial community.

At present, only three countries—Myanmar, Iran, and North Korea—are on the FATF blacklist.

Ukraine has been pushing for Russia’s blacklisting as part of a broader effort to undermine financial support for the ongoing invasion. In June, the Ukrainian government formally urged the FATF to take action against Russia. Ukraine’s Minister of Finance, Sergii Marchenko, has accused Russia of “blatantly” violating international AML standards and being involved in the financing of private militia groups.

In response to questions posed in June regarding why Russia had not been blacklisted, former FATF President T. Raja Kumar pointed to Russia's suspension from the organization. “I can’t over-emphasise how this is an unprecedented decision, the first time that FATF has suspended any member,” Kumar said, emphasizing that Russia “no longer plays a leadership role, nor does it attend FATF meetings.”

The upcoming plenary could mark a turning point in the ongoing debate over Russia’s financial isolation on the global stage.

By fLEXI tEAM