Russia trying to convey position to FATF, inclusion in blacklist could cause problems for trade - CBR chief

ST. PETERSBURG. June 16 (Interfax) - Russia is trying to convey its position to the Financial Action Task Force on Money Laundering (FATF) by all means possible ahead of its meeting next week, insisting that there are no objective reasons to put the country on the organization's black or grey lists, Central Bank chief Elvira Nabiullina said.

"We are trying to communicate in any way possible, explaining our position, including, foremost that there are no objective grounds for excluding us from FATF," Nabiullina told reporters on the sidelines of the St. Petersburg International Economic Forum.

She recalled that Russia's anti-money laundering system was recognized as effective in 2019 and it continues to work and develop, for example a KYC (know your customer) platform has been introduced.

"Therefore, in our view, there are no objective grounds. But if a politically motivated decision is made, then, of course, this will complicate payments, because this will increase time spent on compliance, there could be some refusals to carry out payments in addition to what we have today, meaning this will worsen foreign trade activity," Nabiullina said.

In general, a change in Russia's status at the FATF will not be able to stop foreign economic activities, and for major commodities it is unlikely to affect the volume of trade, she said. "But costs related to compliance will, of course, increase," Nabiullina said.

The FATF plenary week will begin on June 19 in Paris. So far, no official statements have been made about possible steps in relation to Russia. However, foreign media have recently been discussing the possibility of the FATF considering including Russia in gray or black lists.