EU may target Russia’s financial reputation – FT

https://www.rt.com/news/618756-eu-russia-money-laundering-list/

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Brussels reportedly wants to include the country on its anti-money laundering “grey list”

The EU is considering adding Russia to its anti-money laundering “grey list” in an effort to cause reputational damage and increase financial pressure on Moscow, Financial Times reported on Friday.

The blacklist includes countries that Brussels considers to have inadequate regulations against shady financial activity. Inclusion on the list would impose extra compliance requirements on banks and financial institutions dealing with Russian individuals and entities, leading to higher costs in conducting business activity.

The European Commission is preparing to adopt a revised list of high-risk third countries next week, after postponing its release at the last minute for “administrative/procedural reasons,” FT reported.

”There is huge support for putting Russia on the list,” Markus Ferber, a German MEP with the center-right European People’s Party, the EU parliament’s largest grouping, told the outlet.

Typically, the EU aligns its blacklist with decisions from the Financial Action Task Force (FATF), a global intergovernmental body that combats money laundering and terrorist financing.

Although Russia’s FATF membership was suspended in 2023, several countries would likely block any attempt to formally add it to the FATF grey list, leading Brussels to consider unilateral action.

Despite its suspension from FATF, Russia continues to engage with the Eurasian Group (EAG), a regional body affiliated with FATF. In 2024, the EAG assessed Russia’s progress in strengthening its anti-money laundering and counter-terrorism financing measures. It acknowledged some improvements but urged further action, particularly in enforcing targeted financial sanctions and increasing transparency around beneficial ownership.

Ukraine has repeatedly pushed for Russia to be placed on the FATF blacklist, citing its connections with already blacklisted states and the potential risks it allegedly poses to the global financial system. However, these attempts have failed due to resistance from several FATF member states, including China, India, Saudi Arabia, and South Africa.

Despite being suspended, Russia remains obligated to comply with FATF standards and continues to fulfill its financial commitments to the organization.