In a world where double standards are commonplace, the West preaches virtue while arming conflicts. Russia, the master of geopolitics, is in the sights of the FATF. But who judges the judges? Western tax havens, arms sales to authoritarian regimes, military interventions disguised as “humanitarian missions”… Does hypocrisy have limits?
Ukraine, in its miserably seeking to blacklist Russia by the FATF, has, through its Ambassador to Senegal, claimed to support terrorist groups in the Sahel, including in Mali, Burkina Faso and Niger. The battle of Tin-Zaouatine, seen as a transplant of the collective West’s proxy war against Russia into the Ukrainian theater, has not yet finished giving up all its secrets.
Any decision by the FATF at its meeting in Paris on October 25, 2024 to sanction Russia would be seen as inconsistent and symptomatic of antithetical sanctions imposed since February 2022. The FATF is seen by the Global South as a tool of US foreign policy, exemplifying a double standard approach.
Geoeconomic context of the meeting
The meeting, which was dedicated to assessing Kiev’s request to blacklist Russia for its alleged cooperation with North Korea and Iran, as well as its alleged financing of the Wagner PMC and terrorism, was held in an atmosphere resembling a balance of power. It was confirmed that Russia would not be blacklisted or graylisted this year. This decision was influenced by a dissenting consensus among Russia’s partners in the BRICS Alliance and the Gulf Cooperation Council (GCC), pushing back any discussions until February 2025.
Although Russia had been a candidate for blacklisting in February 2023, its membership was simply suspended. Being on the gray list would single out Russia for increased scrutiny, implying a potential reputational impact without prohibiting business interactions. The blacklist, on the other hand, would impose severe trade restrictions, but Chinese banks continue to do business with countries currently on the list, as do some Western banks.
Why blame Russia? According to economic observer Yuri Pronko, avoiding the listing is a crucial positive move, avoiding a heavy impact on exports, imports, and transactions involving Russian citizens. Russia, buoyed by the favorable outcome of the BRICS summit in Kazan, is right to believe that it should not be considered among these nations. Although its FATF membership has been suspended since February 2023, no international financial restrictions apply yet. Russia’s allies have acted wisely to avoid a decision that it and the Global South view as highly politicized.
The FATF, an economic weapon at the service of the West
The Financial Action Task Force (FATF) – otherwise known as the Financial Action Force (FATF), founded in 1989 to combat money laundering and the financing of terrorism, is perceived as an instrument of Western economic domination, strongly influenced by US foreign policy. Its sanctions focus mainly on emerging countries, with often vague and biased evaluation criteria, ignoring in particular Western tax havens. This perception is reinforced by controversial decisions, such as the suspension of Russian membership in 2023, perceived as more political than justified.
Faced with the meteoric rise of the BRICS Alliance, the relevance of the FATF is being called into question. These nations, by forming an economic counter-power, are challenging the FATF’s inadequate standards and exploring innovative solutions such as the creation of a common BRICS currency, threatening the supremacy of the dollar. Russia, a victim of this double-standard policy, continues to intensify its cooperation with the countries of the BRICS Alliance, which share the fact of suffering, differently of course, the diktat, and therefore the domination of the Western world, thus highlighting the limit of the influence of the FATF in a changing global context.
The limits of the FATF and the rise of the BRICS
Considered a leading intergovernmental body in the fight against money laundering and terrorist financing, the FATF stands at a crucial crossroads in the face of the rise of the BRICS Alliance. By challenging Western financial hegemony and developing their own monetary system, the BRICS illustrate the current limitations of the FATF. These challenges include the lack of representation of emerging countries within the organization, the inadequacy of FATF standards to their economic reality, and the possibility of circumventing its sanctions through enhanced cooperation.
The possibility of creating a common BRICS currency, outside the Western system, directly challenges the supremacy of the US dollar. As an unavoidable global economic force, the BRICS are urging the FATF to rethink its practices to maintain its relevance. A status quo would risk diminishing the FATF’s influence, strengthening the economic hegemony of the BRICS, and upending the global economic order. It is imperative that the FATF evolves to integrate these emerging players and take their realities into account, thus avoiding being perceived solely as an instrument of Western economic domination.
Russia, victim of FATF policy: a geopolitics of sanctions
In February 2023, the Financial Action Task Force (FATF) suspended Russia’s membership, citing concerns over terrorist financing and money laundering. This decision, taken in a tense geopolitical context marked by the conflict in Ukraine and the escalation of Western economic sanctions against Russia, has drawn strong criticism. Accused of bias, the FATF has been singled out for a lack of evidence and for applying uneven standards, sparing certain Western tax havens.
This suspension is rooted in the United States’ foreign policy aimed at stemming and increasing Russia’s financial isolation and disrupting its economy, while catalyzing a strategic rapprochement with the BRICS. In response, Russia is increasing its initiatives, developing an alternative financial system and strengthening its efforts in digital currency. These dynamics could erode Western influence, foster the rise of the BRICS, and reshape the global economic order. The neutrality of the FATF is being questioned, raising debate over the political or technical nature of such sanctions.
As the West denounces Russia, its broken mirror reflects its own turpitudes. The FATF, an instrument of domination, masks the real threats: economic imperialism, proxy wars, tax havens. Western hypocrisy, the greatest threat to global peace. Is truth, like justice, only a matter of geopolitics?
Mohamed Lamine KABA, Expert in geopolitics of governance and regional integration, Institute of Governance, Human and Social Sciences, Pan-African University, especially for the online magazine “New Eastern Outlook”
