Washington: Financial Action Task Force (FATF) global financial crime watchdog suspended Russia's membership, saying Moscow's war in Ukraine violated organisation's principles.

FATF is an inter-governmental organisation set up to combat money laundering and terrorism financing by setting global standards and checking if countries respect them. "This is first time member of FATF is suspended," FATF President Raja Kumar told news conference.

"Russia is effectively sidelined from organisation." Ukraine, which has made repeated calls to exclude Russia from organisation, welcomed decision to suspend Russia but added that it would continue its push with FATF members to go further and get Russia blacklisted. "It's not enough but it's an important step in direction," Ukrainian Finance Minister Serhiy Marchenko said. While Russia has now been suspended, it remains member.

Main consequences of Friday's decision will be that Russia will be barred from attending all meetings and accessing documents, FATF said. "Russian Federation remains accountable for its obligation to implement FATF Standards. Russian Federation must continue to meet its financial obligations," FATF said

Published in The Daily National Courier, February, 25 2023

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