On November 14, 2024, the European Parliament in Brussels urged the European Commission to consider adding Russia to the list of countries with a high risk of money laundering and terrorism financing. MEPs argue that Moscow is financing its aggressive war against Ukraine through corrupt schemes that enable the regime to circumvent international sanctions.
The discussion took place during a plenary session with Mairead McGuinness, the European Commissioner for Financial Services and Financial Stability. The Financial Action Task Force (FATF) oversees the establishment of international standards for combating money laundering and terrorism financing, maintaining 'black' and 'grey' lists of countries that violate these standards.
Russia joined FATF in 2003, but its membership was suspended in 2023 due to the war in Ukraine. Since then, Kyiv has attempted twice to have Russia included in the FATF 'black' list, citing its threat to the global financial system and its ties to North Korea and Iran, which are already on the list. However, influential FATF member countries, including India, China, Saudi Arabia, and South Africa, opposed these initiatives.
The EU generally adheres to FATF standards but also conducts its own assessments of financial threats posed by third countries. The inclusion of a country in the EU's high-risk list means that EU banks must apply enhanced due diligence measures during transactions.
Despite 14 sanctions packages imposed on Russia due to the war, Brussels is preparing to implement another stringent mechanism. McGuinness emphasized that weakening Russia's capacity to conduct its aggressive war against Ukraine is a top priority for the EU. She noted that the Commission is considering the possibility of conducting its own risk assessment regarding Russia.
German MEP Markus Ferber stated that the situation with Russia is clear, as the country is engaged in illegal aggression against Ukraine and attempting to evade sanctions. Finnish MEP Eero Heinäluoma stressed that financial loopholes in the EU system must be urgently closed to stop the war's financing.
Moreover, Mariusz Kamiński, a former Polish interior minister and current MEP, highlighted that Russian money, flowing through global banking systems and cryptocurrency transfers, not only funds the war in Ukraine but also supports hybrid warfare against the West. He cited past incidents of Russian espionage and sabotage in Europe as evidence of the need for stricter measures.
French liberal MEP Stéphanie Yon-Courten argued that by laundering dirty money, Russia directly threatens democratic systems in Europe, urging the EU to take action to protect its citizens and financial integrity.