Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of placing Russia on a domestic money laundering watchlist.

The UK’s list of high-risk third countries aligns with those countries identified by the Financial Action Task Force (FATF) as having strategic deficiencies in their anti-money laundering and counter terrorist financing regimes, which ensures that the identification of high-risk third countries is underpinned by the FATF’s consistent, technical methodology, and robust assessment processes.

Russia is not included in either the FATF’s or UK’s list of high-risk third countries. However, regulated businesses should in practice already be taking enhanced due diligence measures in relation to Russia because the UK Money Laundering Regulations require enhanced scrutiny in situations that present a high risk of money laundering or terrorist financing, and the UK’s National Risk Assessment of Money Laundering and Terrorist Financing 2020 specifically highlights the significant volume of illicit finance emanating from Russia.