“The Eurasian Group on Combating Money Laundering and the Financing of Terrorism recently discussed a report on Russia’s progress in implementing FATF recommendations during a plenary meeting in China. This group includes countries from the post-Soviet region, as well as India and China,” explained German Neglyad, Deputy Director of the Federal Service for Financial Monitoring.
The Financial Action Task Force (FATF) currently advises countries to mitigate risks associated with cryptocurrencies through legislative measures.
“It seems that our rating in accordance with these recommendations will be lowered, as we have not yet passed laws regarding the regulation or prohibition of crypto exchanges and exchangers. This serves as a further incentive for us to accelerate our efforts,” said the official.
Established in 1989, FATF is an intergovernmental organization focused on combatting terrorist financing and criminal activities involving cryptocurrencies. Approximately 190 states and territories adhere to FATF recommendations, while the international group consists of 37 countries, including Russia. However, Russia’s membership was temporarily suspended in February 2022.
To regain Russia’s standing in the organization, the Deputy Director of Rosfinmonitoring proposed implementing stricter control measures over cryptocurrencies.
“Regarding regulatory measures, our primary focus is on controlling cryptocurrency transactions by incorporating crypto exchanges and exchangers into our anti-money laundering framework. This would require these entities to fulfill obligations similar to banks, including client identification, transaction data storage, and cooperation with Rosfinmonitoring,” explained Neglyad.
In October, representatives from G20 countries approved a roadmap for regulating crypto assets during a meeting in Marrakech. The objective is to mitigate macroeconomic and financial stability risks associated with digital assets.
The Department for the Development of Virtual Assets of Ukraine’s Ministry of Digital Transformation also recently announced its plans to adopt international standards to combat money laundering through cryptocurrencies.