‘No objective reasons’ for FATF to blacklist Russia, says its central bank

There are “no objective” reasons for Russia to be added to the global financial crime watchdog’s blacklist, the country’s central bank governor, Elvira Nabiullina, said on Wednesday.

The Financial Action Task Force (FATF) suspended Russia’s membership in February, saying Moscow’s war in Ukraine violated the organisation’s principles, a step Russia denounced as “dangerous”.

Ukraine, which is not a member, urged the FATF to blacklist Russia at its meetings in Paris this week.

“I believe that there are no objective, technical reasons for adding us to the blacklist,” Nabiullina told members of Russia’s upper house of parliament, adding that Moscow had implemented an effective system to counter money-laundering.

“The decision, if taken, would be politically motivated, but if such a decision is taken, it will of course have negative consequences for us,” she said.

“This would above all negatively impact international settlements … It would lengthen compliance procedures even further, it could block some payments.”

The Paris-based FATF is a 39-member group of countries that works to combat money-laundering and the financing of terrorism and weapons proliferation.

It lists countries as “high risk” if they have “significant strategic deficiencies” in countering these issues.

Russia is the first country to be suspended by the FATF, though it remains a member. Its suspension means it is barred from attending meetings and accessing documents, the FATF said.

Reuters