• Українською
  • Ukraine calls on FATF to blacklist russia as ties with North Korea and Iran strengthen
    Ministry of Finance of Ukraine, posted 14 February 2024 09:35

    The Ministry of Finance of Ukraine and the Financial Monitoring Service of Ukraine call on the Financial Action Task Force (FATF) to curb russia’s increasing efforts to undermine global financial security and its intensifying ties with Iran and North Korea.

    The FATF will hold its next plenary meeting in Paris on 19-23 February – the eve of the second anniversary of russia’s illegal full-scale invasion of Ukraine – at which it should blacklist russia and issue an expanded statement on risks emanating from russia.

    A year ago, the FATF suspended russia for violating the organization’s core principles of promoting security, safety and the integrity of the global financial system. FATF also expressed deep concerns about reported arms trade between russia and UN-sanctioned states and malicious cyber activity emanating from russia. This action, while significant, has failed to deter russia, which has since become increasingly belligerent and deepened ties with North Korea and Iran.

    russia has used North Korean ballistic missiles and munitions on the battlefield in Ukraine, including in December 2023 and January 2024. Acquisition of such missiles and conventional weapons from North Korea is a serious violation of both the UN sanctions and FATF principles.

    russia is also increasingly reliant on Iranian drones to maintain its illegal invasion and step-up attacks targeting Ukrainian civilians. russia has set up a joint payment system to help Iran bypass SWIFT and has linked the two countries’ banking systems. Myanmar is also expected to join the russian payment system later this month. Once Myanmar joins the payment system, russia will have doubled down on financial cooperation with all FATF-blacklisted states.

    “russia’s increased cooperation with Iran and North Korea has given them a backdoor entry into the global financial system. To address this, FATF must blacklist russia and alert the international financial system about the risks posed by russia. Inaction will lead to a more unsafe global economy and erode the achievements that the FATF and its members have made so far in the fight against money laundering and financing of terrorism and proliferation,” Minister of Finance Sergii Marchenko said.

    “A year since the FATF suspension, russia’s deliberate non-compliance with FATF principles and UN sanctions, increasing non-transparency and continued malicious cyber activities are making it one of the riskiest jurisdictions for financial crime. Indisputable evidence continues to mount that russia’s illicit activities threaten global peace and security. We are confident that FATF will treat this issue with utmost urgency during the upcoming plenary to help protect global financial security,” Head of the State Financial Monitoring Service of Ukraine Igor Cherkaskyi said.