The global money laundering and terrorist financing watchdog, the Financial Action Task Force (FATF), confirmed Friday that it has decided to suspend the membership of the Russian Federation. The watchdog confirmed that the country remains accountable for its implementation of FATF Standards and must meet its financial obligations.

Despite the decision, the FATF confirmed that the Russian Federation will continue to be an active member of the Eurasian Group on Money Laundering (EAG) and at the same time keep its rights as such a member. The FATF vowed to continue to monitor the topic and reassess, lift or modify restrictions during future Plenary meetings depending on changes within the vertical.

“The FATF strongly condemns the Russian Federation’s war of aggression against Ukraine. Over the past year, the Russian Federation has intensified its inhumane and brutal attacks targeting critical public infrastructure,”

explains a statement released by the FATF

Back on February 20, 2022, Russia launched a full-scale military invasion against Ukraine, an action that was classified by the FATF as an “illegal, unprovoked and unjustified full-scale military invasion.” The financial watchdog acknowledged the devastating impact of the invasion that brought an unprecedented loss of lives and destruction in the country, saying that the Russian Federation continues with its “brutal attack on Ukraine.”

“The Russian Federation’s actions unacceptably run counter to the FATF core principles aiming to promote security, safety, and the integrity of the global financial system,“

added the FATF

The military invasion, according to the FATF, is against its principles for a global financial system that is safe and secure. “They also represent a gross violation of the commitment to international cooperation and mutual respect upon which FATF Members have agreed to implement and support the FATF Standards,” added the watchdog. The FATF urged all jurisdictions to be on the lookout for any safety, security and integrity threats to the global financial system that may arise from Russia’s aggression against Ukraine.

Gibraltar Continues to Be a Part of FATF’s Grey List

Coinciding with the announcement about the Russian Federation, the FATF confirmed that Gibraltar, a famous gaming jurisdiction, remains on its increased monitoring list, also known as the grey list.

Gibraltar was added to the watchdog’s list last summer. This coincided with the removal of Malta from the grey list. Remaining part of the list means that the country will be under increased monitoring by the FATF and will continue to collaborate with the watchdog to resolve “strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing.”