The Financial Action Task Force (FATF) has suspended its membership while announcing the gray list of South Africa and Nigeria.
In a statement issued by the International Financial Monitoring Task Force (FETIF), it said that its membership has been suspended due to unacceptable actions by Russia.
According to the report of the foreign news agency, FATF’s statement further stated that the actions of the Russian Federation are against the basic principles of FATF, which is why this step was taken.
According to the Financial Action Task Force, it is active in promoting global security, safety and stability of the financial system, but Russia has committed actions contrary to these fundamental principles.
It should be remembered that this decision has been made by the task force at a time when the Russian attack on Ukraine has completed one year.
Apart from this, the Financial Action Task Force has also decided to put South Africa and Nigeria on the gray list, citing that these African countries have failed in their efforts to prevent the financing of terrorism and money laundering.
Analysts say the FATF decision is a major blow to South Africa’s advanced economy, but being placed on the gray list could disrupt capital flows into the country.
FATF added in the statement that these two countries have shown political commitment to accelerate their efforts.
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