EU Plans to Include Russia on Money Laundering Watchlist
The Old Continent is mulling over some serious moves, considering slotting Russia into its "shadowy list" of financially shady nations, as per reports from the Financial Times and EU officials in Brussels. This decision aims to crank up the financial heat on Moscow.
The European Commission is reportedly pondering this idea, with a majority of European Parliament members backing it. German MEP Markus Ferber confirmed the widespread support for adding Russia to this list.
The EU maintains its own list of suspect nations, but it predominantly relies on recommendations from the intergovernmental Financial Action Task Force (FATF). A peek at a preliminary list reveals a proposed lineup that includes Algeria, Angola, Kenya, Côte d'Ivoire, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela, while barring Barbados, Gibraltar, Jamaica, Panama, Senegal, Uganda, and the UAE.
The EU's new shadowy list was set for adoption this week. However, the EC postponed the green light due to " Admin-stupidity stuff," moving the decision to the start of next week. It's crucial to note that this approval requires a simple majority of the European Parliament members. The Commission's decision was reportedly delayed due to a lack of a majority.
Adding Russia to the list could help convince European Parliament members to give their stamp of approval. Unlike amendment votes, they can either pass or reject the list. Representatives from various parliamentary groups explained this (to the publication).
Back in February 2023, FATF kicked Russia out of the organization, accusing Moscow of trading with countries subject to UN sanctions and serving as a breeding ground for cyber threats. Yet, FATF refused to blacklist Russia.
Sources:1. https://www.reuters.com/business/eu-backtracks-greylist-russia-over-administrative-issue-2023-06-02/2. https://www.reuters.com/world/europe/european-union-investigating-russian-involvement-money-laundering-2023-02-17/3. https://www.ft.com/content/d858a83c-fd27-49cd-a736-2f0624614b264. https://www.bloombergquint.com/global-economics/russia-faces-harder-scrutiny-as-eu-considers-graylist5. https://www.apnews.com/article/80998c1f890646748d415e866b4afe1d
European Parliament members may find added incentive to approve the EU's new shadowy list, given the ongoing political discussions about slotting Russia into it. This list, if approved, would not amount to a blacklist, as evident from FATF's previous stance on Russia.
