Tag: Sanctions

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. 

The Capture of “Fat Leonard.”

Recently, Venezuelan police captured Leonard Glenn Francis, better known as “Fat Leonard,” after he fled from his San Diego home while under house arrest. Francis, a Malaysian defense contractor was involved in a massive 35-million-dollar bribery and fraud scandal. Earlier this month, according to The Guardian’s Edward Helmore, Francis, who is due to be sentenced for his part in the scandal, cut off his ankle bracelet and left the U.S with the possible intention of going to Asia or Russia. Fat Leonard was brazen in his methods for winning lucrative U.S Navy contracts. He would host lavish parties for members of the U.S. navy in Asian ports, wining and dining the right people to gain preferential treatment in the bidding for resupplying contracts.

On the 27th of September of last year, Aljazeera reported that Fat Leonard has kidney cancer and was attempting to apply for political asylum in Venezuela. According to the report, it has been suggested by the State Department that the socialist government in Venezuela, led by Nicolas Maduro could use him as a bargaining chip to reduce U.S. sanctions. According to PBS, the sanctions toward Venezuela prevent U.S banks from dealing with the Venezuelan government or the state oil firm PDVSA.  While the U.S does have an extradition treaty with Venezuela, it does not have an embassy in Caracas, which could make any deal more complicated.