Category: Anti-Corruption

The Potential Ramifications of FATF Sidelining Russia.

In recent weeks there have been reports that the Financial Action Task Force (FATF) is discussing the possibility of excluding Russia from the anti-money laundering group due to the ongoing war in Ukraine. According to the International Working Group on Russian sanctions (a collection of independent experts in international relations based at Stanford University), the ramifications of FATF blocking Russia would be considerable. Firstly, it wouldn’t allow Russia to influence the creation of new International anti-money laundering laws, which Russia may try and water down with its influence. Secondly, it would force western banks to institute further checks on any capital flows in or out of Russia. Finally, complete sanctions would most likely stop the current practice of Russian companies being able to conduct financial dealings through one of the few banks in Russia that have not yet been banned.

Given the current circumstances, Ukrainian financial institutions are leading the drive to get Russia sanctioned by FATF. On October 14th, the National Bank of Ukraine released a statement pushing FATF to exclude Russia from future FATF conferences and legislation. The Ukrainian World Congress, a non-profit organization advocating for the rights of Ukrainians worldwide, has added its voice to calls for Russia to be sidelined. While the West should welcome such a move, it is now unclear if and when it will happen. 

A New Anti- Corruption Task Force in Australia?

The recently elected Labor government (similar to the Democrats in the U.S), led by Prime Minister Anthony Albanese, is planning to introduce new anti-corruption legislation. The main goal of this legislation is to set up a federal task force to oversee any anti-corruption investigations. In recent years, there have been several high-profile corruption scandals, including one involving a labor member of Parliament who accepted money from Chinese donors six years ago. According to Peter Hartcher of the Sydney Morning Herald, polling in Australia suggests that the public wants stronger A-C laws. Although bodies already exist at the state level in Australia dealing with this issue, this new legislation will be national. However, despite Albanese’s pledge to enact the law by the end of the year, there are signs that it could be held up by cross-bench members of Parliament who want an in-depth debate of the bill before enacting it. Its passage has also been held up by the passing of the Queen, which has caused Parliament to go into recess.