The European Commission has officially added Russia to the list of countries with a high risk of money laundering and terrorist financing. This decision was made considering the strategic deficiencies of the Russian Federation in combating the legalization of illegal income.
This is reported by Finway
Technical Assessment and Decision Criteria
In July, the European Commission approved a Delegated Regulation that mandates a comprehensive review of third countries not part of the Financial Action Task Force (FATF) by the end of 2025, whose membership has been suspended. The purpose of this review is to assess the need to update the EU list on combating money laundering in accordance with new data and risks.
Russia fell under the regulation due to the suspension of its FATF membership. The European Commission conducted a technical assessment based on clearly defined methodologies and information from open sources, competent authorities of member states, and the European External Action Service.
“This review concluded that Russia meets the criteria for being classified as a third country with a high level of risk.”
Implications for Financial Transactions with Russia
From now on, entities in the European Union working in the field of anti-money laundering must apply enhanced vigilance to financial transactions related to countries on the high-risk list. This applies particularly to banks, financial institutions, and other organizations dealing with cross-border money flows.
The Delegated Regulation will come into effect after the review is completed and approved by the European Parliament and the Council of the EU, which is expected to occur within one month. If necessary, this period may be extended by another month.
Russia has been a member of FATF since 2003; however, its membership was suspended in 2022 due to aggression against Ukraine. In 2024, at Ukraine’s request, FATF did not place the Russian Federation on the organization’s blacklist.