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CHINA JOINS REGIONAL ANTI-MONEY-LAUNDERING EFFORT - RUSSIAN PAPER
Kommersant, Moscow
9 Dec 04
Text of report by Vadim Visloguzov headlined: "Russia to teach its
neighbours how to fight against dirty money", published in Russian
newspaper Kommersant on 9 December:
The first plenary session of the Eurasia Group, set up to counteract
the legalization of the proceeds of crime and financial terrorism, was
held in Moscow's President Hotel yesterday. Having expended a lot of
effort creating its own "mini-FATF" (Financial Action Task Force),
Russia is not averse to spending 1m dollars on teaching its CIS
neighbours the basic methods of fighting against dirty money.
The idea of creating a regional agency of the FATF (Financial Action
Task Force - the group that elaborates financial measures to combat
money-laundering) with its headquarters in Moscow was suggested by
Rosfinmonitoring (Federal Service for Financial Monitoring) chief
Viktor Zubkov back in September last year. Similar regional groups
have now been set up by countries in Europe, southern Africa, South
America, the Pacific region, and the Caribbean.
In October this year Moscow's organizational efforts were crowned with
success. In addition to Russia, the Eurasia Group (EAG) members are
Tajikistan, Uzbekistan, Belarus, Kyrgyzstan, Kazakhstan, and -
strangely enough - China. The other community countries are not so far
in any hurry to join the EAG. Officially this is attributed to the
fact that Georgia, Armenia, Azerbaijan, Ukraine, and Moldova are
members of another FATF structure - Moneyval (Evaluation of Anti-Money
Laundering Measures) (which unites European countries not yet admitted
to the FATF). Unofficially, the actual founders of the FATF - the G-7
countries - do not want Russia's influence in the post-Soviet area to
be too greatly reinforced. On the other hand, China's involvement with
the CIS countries' financial intelligence community follows from the
fact that China aspires to FATF membership and, under the existing
rules, has to belong to some regional anti-money-laundering
organization at the time of admission.
Yesterday saw the first plenary session of the FATF Eurasia
Group. More out of custom than necessity, the financial intelligence
chiefs held it behind closed doors. The issues decided were mainly of
an organizational character. In the absence of other takers, Russia
took responsibility for financing the EAG's activity: 1m dollars will
be allocated for the purpose out of the federal budget.
Obviously, Russia is not going to help its neighbours entirely out of
altruistic considerations. According to Rosfinmonitoring's
information, every year 17m citizens of CIS countries cross Russia's
semipermeable borders in both directions, carrying millions of dollars
"in their bags". Moscow's aim is to gain control of these money
flows. Most CIS countries, however, do not yet have either their own
financial intelligence services or special "antimoney-laundering"
legislation. Viktor Zubkov, now also chair of the EAG, complains that
Rosfinmonitoring often simply has no-one to make contact with in CIS
countries. So, as he particularly stressed yesterday, the 1m dollars
will go mainly on technical assistance to EAG countries in setting up
their own antimoney-laundering systems.
It was also decided yesterday to include Germany, Moldova, and Japan
among the organization's observers. Judging by Viktor Zubkov's
statements yesterday, though, there are no plans to expand the group's
still extremely modest list of full members. "We are open to anyone
who wants to join, but I see no necessity to expand the EAG," he
commented. In addition yesterday, three working groups were set up -
covering legal questions, the methodology of fighting
money-laundering, and technical support for the process - to take on
the practical work of implementing FATF recommendations.
The next EAG session will be held next April in Beijing.
From: Emil Lazarian | Ararat NewsPress
Kommersant, Moscow
9 Dec 04
Text of report by Vadim Visloguzov headlined: "Russia to teach its
neighbours how to fight against dirty money", published in Russian
newspaper Kommersant on 9 December:
The first plenary session of the Eurasia Group, set up to counteract
the legalization of the proceeds of crime and financial terrorism, was
held in Moscow's President Hotel yesterday. Having expended a lot of
effort creating its own "mini-FATF" (Financial Action Task Force),
Russia is not averse to spending 1m dollars on teaching its CIS
neighbours the basic methods of fighting against dirty money.
The idea of creating a regional agency of the FATF (Financial Action
Task Force - the group that elaborates financial measures to combat
money-laundering) with its headquarters in Moscow was suggested by
Rosfinmonitoring (Federal Service for Financial Monitoring) chief
Viktor Zubkov back in September last year. Similar regional groups
have now been set up by countries in Europe, southern Africa, South
America, the Pacific region, and the Caribbean.
In October this year Moscow's organizational efforts were crowned with
success. In addition to Russia, the Eurasia Group (EAG) members are
Tajikistan, Uzbekistan, Belarus, Kyrgyzstan, Kazakhstan, and -
strangely enough - China. The other community countries are not so far
in any hurry to join the EAG. Officially this is attributed to the
fact that Georgia, Armenia, Azerbaijan, Ukraine, and Moldova are
members of another FATF structure - Moneyval (Evaluation of Anti-Money
Laundering Measures) (which unites European countries not yet admitted
to the FATF). Unofficially, the actual founders of the FATF - the G-7
countries - do not want Russia's influence in the post-Soviet area to
be too greatly reinforced. On the other hand, China's involvement with
the CIS countries' financial intelligence community follows from the
fact that China aspires to FATF membership and, under the existing
rules, has to belong to some regional anti-money-laundering
organization at the time of admission.
Yesterday saw the first plenary session of the FATF Eurasia
Group. More out of custom than necessity, the financial intelligence
chiefs held it behind closed doors. The issues decided were mainly of
an organizational character. In the absence of other takers, Russia
took responsibility for financing the EAG's activity: 1m dollars will
be allocated for the purpose out of the federal budget.
Obviously, Russia is not going to help its neighbours entirely out of
altruistic considerations. According to Rosfinmonitoring's
information, every year 17m citizens of CIS countries cross Russia's
semipermeable borders in both directions, carrying millions of dollars
"in their bags". Moscow's aim is to gain control of these money
flows. Most CIS countries, however, do not yet have either their own
financial intelligence services or special "antimoney-laundering"
legislation. Viktor Zubkov, now also chair of the EAG, complains that
Rosfinmonitoring often simply has no-one to make contact with in CIS
countries. So, as he particularly stressed yesterday, the 1m dollars
will go mainly on technical assistance to EAG countries in setting up
their own antimoney-laundering systems.
It was also decided yesterday to include Germany, Moldova, and Japan
among the organization's observers. Judging by Viktor Zubkov's
statements yesterday, though, there are no plans to expand the group's
still extremely modest list of full members. "We are open to anyone
who wants to join, but I see no necessity to expand the EAG," he
commented. In addition yesterday, three working groups were set up -
covering legal questions, the methodology of fighting
money-laundering, and technical support for the process - to take on
the practical work of implementing FATF recommendations.
The next EAG session will be held next April in Beijing.
From: Emil Lazarian | Ararat NewsPress