On February 24, the Financial Action Task Force (FATF), the international standard-setting body on illicit finance,
suspended the Russian Federation’s membership, saying the country’s “actions unacceptably run counter to the FATF core principles aiming to promote security, safety, and the integrity of the global financial system.” This marks the first time the FATF has ever suspended a country from its membership. Despite the suspension, the FATF emphasized that Russia “remains accountable for its obligation to implement the FATF Standards” and “must continue to meet its financial obligations.” According to the statement, the FATF will continue to monitor the situation and will consider whether to lift or modify these restrictions during each of its plenary meetings.
Treasury Secretary Janet Yellen issued a statement following the suspension. Explaining that “FATF members lead the global effort on combatting money laundering and the financing of terrorism and proliferation and members are expected to uphold and promote core principles that safeguard the global financial system,” Yellen stressed that “Russia’s ongoing war undermines the principles of international cooperation and mutual respect that underpin the mandate of the FATF.” She further commented that the “United States commends the FATF’s historic decision to suspend Russia’s membership in the body,” and added 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. Further, Russia’s dealings with suppliers of last resort such as Iran and North Korea, its government-driven efforts to evade international sanctions and export controls, and other activities … make it a haven for illicit finance—the very thing the FATF works to combat.”
