Analysis of the advantages and risks of national money laundering systems of the Eurasian Group countries

In the context of politicization of international anti-money laundering structures, first of all FATF, which suspended Russia's membership in them, which significantly complicates the fight against money laundering and financing of terrorism (MLF/TF) in respect of cross-border financial flows, the topic of Russia's activation of regional cooperation for MLF/TF purposes is actualized. A substantive analysis of the benefits and risks of technical compliance in the countries of the FATF-type Eurasian Group (EAG) is carried out. The information of the study is based on the reports of the last mutual inspections of the EAG member countries. It is concluded that EAG countries are actively implementing international anti-money laundering standards, the driving force behind this process is the realization of the damage to the country's financial system, its economy and the welfare of the population, which may follow if FATF sanctions are imposed on them. Compliance with most of the requirements of international MLF/TF standards is indicated by ratings of C “compliant” or LC “largely compliant”. Ratings of PC “partially compliant” and NC “non-compliant” are noted in those rare cases where individual countries, due to resource constraints and unobvious benefits, cannot afford additional anti-money laundering procedures. Such ratings do not indicate any intent on the part of the EAG countries receiving them to maintain the deficiencies in their antiwashing systems to gain a competitive advantage in the financial marketplace to ensure customer switching from financial systems with full FATF compliance. Due to the FATF sanctions powers, if a country does not make efforts to eliminate the identified deficiencies noted by the PC and NC ratings, the risks of imposing restrictive measures on the financial system of a country up to full financial isolation increase. It is emphasized that individual efforts to improve efficiency seem unattainable for EAG least developed countries. The necessary to find a collective solution to the existing shortcomings of MLF/TF systems is justified. The strength of the EAG countries in this matter is the preservation of goodwill to cooperate not only within the EAG, but also in other international groups, such as the EAEU, BRICS, SCO and others.