Ukraine reiterates calls for FATF to blacklist Russia amid strengthening ties with North Korea and Iran

The Ministry of Finance of Ukraine and the State Financial Monitoring Service of Ukraine have once again called on the Financial Action Task Force on Money Laundering (FATF) to blacklist Russia amid growing ties with North Korea and Iran.

Source: press service of the Ministry of Finance

"The Ministry of Finance of Ukraine and the State Financial Monitoring Service of Ukraine call on FATF to curb Russia's growing efforts to undermine global financial security and strengthen its ties with Iran and North Korea," the statement said.

It is noted that the next FATF meeting will be held from 19 to 23 February in Paris, on the eve of the second anniversary of the full-scale invasion of Ukraine by the Russian Federation.

"At the meeting, Russia should be blacklisted by the organisation, and the FATF should issue an expanded statement on the risks that come from Russia. 

A year ago, the FATF suspended Russia's membership for violating the organisation's key principles of promoting the global financial system's safety, security and integrity. The FATF also expressed deep concern about reports of arms trade between Russia and states under UN sanctions, as well as malicious cyberspace activity coming from Russia. These FATF measures, besides being important, have failed to deter Russia, which has since become increasingly belligerent and deepened its ties with North Korea and Iran," the Ministry of Finance said. 

The ministry stressed that the Russian Federation used North Korean ballistic missiles and ammunition in Ukraine, including in December 2023 and January 2024. The purchase of such missiles and conventional weapons from North Korea is a serious violation of both UN sanctions and FATF principles.

In addition, according to the Ministry of Finance, the Russian Federation is increasingly using Iranian-made UAVs to continue its illegal invasion and increase attacks against the civilian population of Ukraine.

Russia also created a parallel payment system to help Iran bypass SWIFT and combine the two countries' banking systems.

"Myanmar is also expected to join the Russian payment system at the end of this month. As soon as Myanmar joins the payment system, Russia will double the degree to which it financially cooperates with all countries blacklisted by the FATF," the Finance Ministry said. 

"The intensification of Russia's cooperation with Iran and North Korea allowed the latter [Myanmar] to enter the global financial system using a backdoor. To solve this problem, the FATF must put Russia on its blacklist and warn the international financial system about the risks that Russia poses.

This lack of action will pose an even greater danger to the global economy and negate the achievements of the FATF and its members in the fight against money laundering, terrorist financing and the proliferation of weapons of mass destruction," said Serhii Marchenko, Finance Minister of Ukraine.

"A year after the suspension of FATF membership, Russia's deliberate non-compliance with FATF principles and UN sanctions, growing opacity and continued malicious cyber activity make it one of the riskiest jurisdictions for financial crimes. 

There is more and more irrefutable evidence that Russia's illegal activities threaten global peace and security. We are confident that the FATF will devote its full attention to the issue during the upcoming plenary session to help protect global financial security," added Ihor Cherkaskyi, head of the State Financial Monitoring Service of Ukraine.

Background:

• Ukraine has repeatedly called on FATF to blacklist Russia.
• In May 2023, it was reported that Ukraine was concerned about the blackmail of Russian Federation members of the FATF on the eve of the organisation's June plenary session.
• In June 2023, the FATF declined to blacklist Russia.
• On 24 February 2023, FATF completely suspended Russia's membership in the organisation.

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