Russia has been added to the European Union’s list of high-risk countries due to concerns over gaps in its systems to tackle money laundering and terrorist financing.
A technical assessment by the European Commission found Russia to have “strategic deficiencies” in its national rules and practices that are designed to prevent financial crime.
A high-risk designation by the EU requires banks and other financial institutions in member states to apply stricter checks and increased monitoring to transactions that involve listed countries.
Increased scrutiny on Russian transactions
Under the EU’s anti-money laundering framework, institutions are now required to apply enhanced vigilance when dealing with Russia, including more thorough checks and reporting of suspicious financial activity.
The decision will take effect unless the European Parliament or the Council objects within the next month, with a possible extension of one additional month, according to the European Commission.
