FATF Suspends Russia’s Membership

Fried Frank…

The Financial Action Task Force (“FATF”) suspended Russia’s membership in response to its “unprovoked and unjustified” invasion of Ukraine.

In a published statement, FATF said that the suspension was a result of Russia’s continued “violation[s] of the commitment to international cooperation and mutual respect upon which FATF Members have agreed to implement.”

FATF also expressed concern over reports of arms trade between Russian and other sanctioned jurisdictions as well as malicious cyber-activities emanating from Russia. FATF urged countries to continue to monitor for Russian sanctions evasion and other threats to the international financial system. FATF said that Russia will remain an active member of the Eurasian Group on Combating Money Laundering, and it will consider whether the suspension should be modified or lifted at each future meeting.

In a separate statement, Treasury Secretary Janet L. Yellen commended FATF’s action, stating that “Russia’s disregard for the sovereignty and territorial integrity of Ukraine is at odds with the FATF’s foundational values of international cooperation and the rule of law.”