According to the information on the FATF-site in regard of the plenary of 16-18 October 2019, the mutual evaluation report of Russia was discussed at the plenary, with a surprising outcome:
The Plenary discussed the joint FATF-EAG-MONEYVAL assessment of Russia and concluded that Russia has an in-depth understanding of the money laundering and terrorist financing risks it faces. It has established robust policies and laws to address these risks, and the country is particularly effective in its investigation and prosecution of terrorist financing. However, it should refine its approach to supervision and prioritise the investigation and prosecution of complex money laundering, especially concerning money being laundered abroad.
This is surely surprising.
Recently the German authorities in their NRA put Russia on the black list of high risk countries.
Reading the FATF text, I wonder what the value of these country evaluations is. Recently Tom Keatinge wrote the country assessment process has become increasingly politicised. He advises FATF to be more nimble and risk-based and apply greater focus to systemically important issues such as the continued failure to advance company registry transparency. He says that greater integrity is required across the country evaluation process.
- Page FATF on the plenary, 18 October 2019.
- Koos Couvée on LinkedIn: “The assessment would catapult Russia to eighth place among the roughly 90 countries assessed thus far under FATF’s 2013 methodology, behind only Switzerland, Italy, Spain, Israel, the US and the Britain“. Couvée wrote As FATF Readies Praise for Russia, Critics Anticipate Backlash for moneylaundering.com, 20 November 2019.
- Denktank wijst Nederland aan als topbestemming voor Kremlin-geld, FD 5 november 2019.
- Article on this blog (Dutch) on high risk countries in the German NRA, 23 October 2019.
- Tom Keatinge, It’s Time to Reform and Refocus the Financial Action Task Force, RUSI, 23 October 2019.
- Joshua Kirschenbaum and Jennifer DeNardis, The Financial Action Task Force Evaluation of Russia: An Opportunity, 11 June 2019.