Russia accepted into the FATF

Russia
02/07/2003
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Russia has at last become a full member of the Financial Action Task Force (FATF), a non-governmental organisation that was created in 1989 to fight money laundering. In 2002 Russia was removed from the FATF’s “black list” and given observer status. The decision to upgrade Russia’s status to full membership was taken at the FATF’s meeting in Berlin on 19th June 2003.

Becoming a full member of the FATF would seem to be to Russia’s advantage as it enhances its international credibility, and therefore improves the investment climate in Russia. There is however a possible downside which raises concerns in the Russian business community: not only has the FATF just approved stricter demands for member governments to take measures against legalizing illegal income, but lawyers, accountants, estate agents, jewellery-stone and metal dealers, amongst others, are required to join the fight against illegal income.

All full members, including Russia, have to implement the FATF’s demands by amending their national legislation by 2004. This means that the consequences of Russia becoming a full member of the FATF will only be seen when the Russian legislative bodies make the necessary amendments to Russia’s legislation.

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