Russia and dirty money. When the aggressor country is on the Fatf black list
According to the European Commissioner for Trade Valdis Dombrovskis, Russia's actions are unacceptably contrary to the basic FATF principles aimed at promoting the security and integrity of the world system. Fatf is a powerful world structure that is to develop measures aimed at combating money laundering and terrorism financing. "It is this organization that establishes international standards and trends in this area to prevent harm to society.
Earlier, FATF focused on the fight against laundering of drugs related to the sale Improved, " - explained Irina Nikita, senior lawyer Stron Legal Services. Irina Nikita reminds that Russia has last reported to FATF on mutual assessment of the implementation of money laundering and terrorism financing in 2019, and since then has developed a reliable legal framework that legalizes illegal assignment and theft and weapons.
And now, according to the focus interlocutor, Russia is becoming a refuge for illegal finances obtained during the immoral war against Ukraine. To exclude Russia from FATF and to bring it to the so -called black list of this organization, Ukraine has repeatedly required a full -scale invasion of the Russian Federation. The FATF black list is called the list of countries that violate international requirements for combating money laundering and terrorism financing.
The classing of the country to the FATF black list significantly affects its economic and financial sustainability. Simply put, it is like the brand of the country, with which the civilized world is avoiding any business.
Today, FATF includes the following countries: however, Russia, despite the indefinite termination of FATF membership, is not included in the black or even the gray list of this organization, which is mentioned more The standards for combating money laundering and terrorism are not adhering to. "Suspension of Russia's membership in FATF is not identical to involving it in the black list, but is an intermediate stage.
This decision is most likely not a complete victory," - explains Maxim Boyarchukov, managing partner of the law company "Maxim Boyarchukov and partners". Even without a loud introduction to the black list, an indefinite termination of Russia's membership in FATF will have significant consequences for Russia in the international arena. This step will lead to an even greater reduction in the confidence of foreign investors and complicate investment.
"Stopping Russia's membership in Fatf means that all entities, when carrying out any transactions with the Russian banking system, must be cautious," Maxim Boyarchukov explains. "Business should strengthen the check and risk assessment when working with Russia, and global jurisdictions should Strengthen your regulation and update risks for markets.
" That is, according to the interlocutor of focus, any direct prohibitions or sanctions on Russia's financial system does not imply, but its essence is to increase the risks for those who want to interact with the financial system of the aggressor country. In this regard, Russia may encounter a complication of foreign trade and international payments.
Since, as Boyarchukov notes, all states of the world, even those that have not yet introduced any sanctions against the Russian Federation, will be forced to use a strengthened check of any transactions related to Russia's financial system. This should weaken the economy of the aggressor country and complicate the further financing of the war.
However, Vitaliy Shapran, an economist, a member of the Financial Analytics Society, notes that with conditionally friendly countries financial monitoring will obviously begin to be regulated by bilateral agreements, although it will take some time. One of the most vulnerable links can be the Russian banking system, which already suffers from numerous sanctions.
"Russian banks expect a decrease in the presence in the world financial system and reduce the domestic market, which is why the work of the banking system will be unprofitable," Maxim Boyarchukov said. The expert does not exclude a further wave of dismissal of bank employees, a decrease in foreign currency in the country and other negative consequences. The prospects for withdrawal of corruption capital in the light of termination of membership in FATF look ambiguous.
On the one hand, other countries should now show great vigilance with the Russians and check them more carefully. On the other hand, according to Vitaliy Shapran, the outflow of capital from the Russian Federation can intensify, since it is not only about FATF, but also about the termination of many jurisdictions of exchange of tax information with the Russian Federation. And this facilitates the wealthy Russians for the procedure of withdrawing their savings to accounts abroad.
Although possible ways of removing the states of Russians from the country are very limited. "The outflow of capital from Russia is restraining sanctions against the Russian elite. Under the risk of freezing and confiscation of funds in favor of Ukraine, its representatives are no longer in a hurry to bring capital to the West, but they are eager to use the direction of Kazakhstan and the Middle East," Shapran concludes.
Maxim Boyarchukov confirms that in EU countries with a developed banking system, banks limit the movement of funds of Russians, especially sub -state. "However, there are other states, in particular, Africa countries with which Russia is now trying to establish relations. That is, there is another attempt to bypass sanctions and access to the World Financial System by integrating the banking system .
Accordingly, now in Russia, it will be more difficult to fight money laundering effectively, and this is the first step to the black list, " - explains the action of the mechanism of Vitaliy Shapran. The interlocutor of the focus clarifies that in order to attribute the Russian Federation to the" black list "it must meet certain criteria, such as a lack of internal system of combating money, identification of banking clients, etc.
and although formally such control systems in Russia are, but their effectiveness after exclusion from FATF is already in question. That is, the further fate of Russia, according to Vitaliy Shapran, depends on that how the Kremlin will work now. , - says focus interlocutor. Recall that many Ukrainians of "mopeds" - Iranian percussion drones became familiar to the weapons of Russian terrorism in Ukraine. Shahd.
Recently, CIA Director William Burns reported in an interview with the American CBS channel that the Union between Russia and Iran is rapidly developing and gradually moving in a "very dangerous" direction. Burns said that in Russia, they consider Iranian fighters in exchange for the continuation of military assistance, which will create significant risks not only for Ukraine but also for the Middle East. Accordingly, the FATF reaction should be adequate.
"Fatf is called a guard dog over financial crime in the world, so its task is to inform other financial regulators and to keep track of what Russia and countries will continue to carry out financial transactions with it. If Russia continues its terrorist actions in Ukraine, It should be in economic isolation, " - says Irina Nikita.
Maxim Boyarchukov reminds that the complete exclusion of Russia from FATF member countries and its introduction to the black list is a principled, adequate and important step. According to the focus interlocutor, this will create universal control over the Russian financial system, complicate the search for tools for bypassing sanctions, restricting international trade, receiving payments for export and making payments for imports, and will accelerate the outflow of capital from the country.
Landing the country in the Fatf black list is a long process that involves many stages. For example, Iran, who was on the black list in February 2020, was under the close supervision of FATF long before. In 2016, Iran has committed himself to FATF to carry out some reforms to eliminate his strategic deficiencies in the field of money laundering and terrorism financing.