European Commission Lists Russia as High-Risk for Money Laundering

The European Commission has added Russia to its list of third countries with an elevated risk of money laundering and terrorist financing. The executive body cited strategic deficiencies in Russia's anti-money laundering and counter-terrorist financing frameworks as the basis for the designation.

This action follows an October resolution by members of the European Parliament to tighten economic sanctions against Moscow. The measure requires financial institutions to implement enhanced due diligence for all transactions and mandates that banks further reduce associated risks.

The decision comes after the Financial Action Task Force failed to blacklist Russia due to opposition from BRICS member states, including Brazil, India, China, and South Africa. The new regulation will enter into force following a one-month review by the European Parliament and the EU Council.