FATF suspends Russia's membership over Ukraine war
Tags: International News
Global anti-money laundering watchdog Financial Action Task Force (FATF) suspended Russia's membership on February 24 over the Ukraine war.
An overview of the news
The FATF has suspended Russia's membership for its "illegal, unprovoked and unjustified" full-scale military invasion of Ukraine.
Russia's actions "run unacceptably" against the FATF's core principles, which aim to protect, safeguard and promote the integrity of the global financial system.
The FATF is also concerned about information on arms trade between Russia and UN-sanctioned jurisdictions, and Russia's malicious cyber activities.
Russia is accountable for its obligation to implement FATF standards.
South Africa, Nigeria on dirty-money grey list
South Africa and Nigeria have been placed on FATF's gray list, indicating deficiencies in the handling of financial flows to the nations.
It is a move that tarnishes the international reputation of such countries and could raise costs for banks and asset managers.
Morocco and Cambodia have been removed from the list after reforming their controls.
Financial Action Task Force (FATF)
It was formed in the year 1989 at the meeting of G-7 countries held in Paris.
It works to generate the necessary political will to bring about legislative and regulatory reforms in the world on issues like money laundering, terror funding.
Headquarters - Located in the headquarters of the Organisation for the Development of Economic Co-operation (OECD) in Paris.
Member Countries - 39 member countries including India and 2 regional organisations (European Commission and Gulf Cooperation Council).
India became a member of FATF in the year 2010.
Its sessions are held three times a year.
Financial Action Task Force (FATF) President - Raja Kumar
List of FATF
Gray List – Countries that are considered safe havens for supporting terror funding and money laundering are placed on the FATF gray list.
Black List - Countries identified as non-cooperative countries or regions are included in the black list. These countries support terrorist funding and money laundering activities.
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