FATF is considering a possible downgrade of Russia's rating due to the lack of regulation in the cryptocurrency market, the deputy director of Rosfinmonitoring, German Neglyad, has warned. At the meeting of the Eurasian Group on Combating Money Laundering and Financing of Terrorism in China drew attention to Russia's implementation of FATF recommendations. Neglyad foresees a downgrade of the country's rating based on the high risk of using cryptocurrencies for criminal purposes, while the chairman of the Moscow Bar Association, Sergei Shugaev, believes that it is unlikely to lead to getting on the "gray" or "black" list, but may cause distrust on the part of cryptocurrency companies and banks.
It is noted that Russia's membership of FATF has been suspended, and while the country is not on any lists, other countries have been sanctioned. The head of Rosfinmonitoring, Yuri Chikhanchin, in a meeting with President Putin, noted a doubling of illegal cryptocurrency transactions this year, with the number of transactions tripling. Chikhanchin emphasized that cryptocurrencies are increasingly being used by drug traffickers, terrorists and corrupt individuals, expressing that an urgent solution to regulate cryptocurrencies is needed. FATF, the organization for combating money laundering and terrorist financing, may decide to downgrade Russia, and this could make any financial transaction with Russia suspicious for banks and payment systems.
