apg: Russia loses observer status at APG on money laundering

The Asia Pacific Group (APG) on Cash Laundering has revoked observer standing of Russia, citing its aggression in Ukraine. The group has key members from China, India and Pakistan, with China being its founding member since 1997. The choice on terminating Russia’s observer standing was taken final month throughout the APG’s annual assembly in Malaysia, mentioned officers.

In accordance with the APG, observer jurisdictions are people who have a presence exterior the APG area however totally assist the work of the group akin to the US, France or Germany. Russia has been an observer since 2010.

“The choice to terminate its APG standing was primarily based on the Monetary Motion Process Drive’s June 2022 resolution to limit its FATF membership rights. Ought to the Russian Federation want to re-establish its APG observer standing sooner or later, it should re-submit an observer software for consideration by the governance committee,” mentioned an APG assertion.

APG can be among the many largest Monetary Motion Process Drive (FATF)-style regional our bodies by way of membership numbers and geographical measurement. The APG has a everlasting and a rotating co-chair. The everlasting chair is presently held by Australia whereas the rotating chair is appointed for a two-year time period by the members. The present co-chairs are from Australia and Malaysia, as per APG.

The worldwide anti-money laundering watchdog, FATF, mentioned in June that Russia’s actions in Ukraine “run counter to the FATF core rules aiming to advertise safety, security and the integrity of the worldwide monetary system”. “Russia’s actions additionally signify a gross violation of the dedication to worldwide cooperation and mutual respect upon which FATF members have agreed to implement and assist the FATF requirements,” it mentioned.

The inter-governmental physique mentioned “Russian Federation can not maintain any management or advisory roles or participate in decision-making on standard-setting”. It additionally cautioned nations to stay vigilant of threats arising from the Russian aggression in Ukraine. “The FATF will monitor the state of affairs and take into account at every of its plenary conferences whether or not the grounds exist for lifting or modifying these restrictions,” it mentioned.