Russian Federation Country Summary
Sanctions
EU & US sanctions in place
FATF AML Deficient List
No
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
The Russian Federation is not on the FATF list of AML Deficient countries, however, due to the invasion of Ukraine, FATF has suspended the FATF membership of the Russian Federation.
Compliance with FATF Recommendations
The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Russia was undertaken in 2024. According to that Evaluation, Russia was deemed Compliant for 6 and Largely Compliant for 31 of the FATF 40 Recommendations. It remains Highly Effective for 2 and Substantially Effective for 4 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.
Sanctions
As a UN member, Russia must support sanctions aimed at maintaining international peace, which have been established in response to various global threats since 1966. The UN sanctions regime includes measures like economic sanctions and arms embargoes, with ongoing regimes focusing on political settlements, nuclear non-proliferation, and counter-terrorism, while also considering the rights of those targeted.
In response to Russia's actions in Ukraine, the US, EU, and other nations have imposed extensive sanctions, targeting major financial institutions and restricting trade. These sanctions aim to isolate Russia economically and politically, while also addressing attempts to circumvent these measures through intermediary countries.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 26 |
| World Bank: Control of Corruption Percentile Rank | 19 |
Corruption in Russia remains a significant issue, with Transparency International ranking the country 129th out of 180 in its 2020 Corruption Perception Index. Despite government efforts, such as the implementation of anti-corruption laws and the establishment of compliance programs, high levels of corruption persist, particularly in public procurement and the judicial system. The lack of effective whistleblower protection and inconsistent law enforcement further complicate the business environment, making it challenging for companies to operate or invest in Russia.
Economy
The Russian Federation ranks 28th out of 190 economies in the World Bank’s Doing Business 2020 Report, indicating some regulatory improvements, yet significant structural issues persist, particularly in governance and the judicial system, which hinder foreign direct investment. Corruption remains a major concern, exacerbated by government favoritism towards local producers through import substitution programs and ongoing sanctions from the EU and U.S. since 2014, which have further complicated the investment landscape.
The investment climate in the Russian Federation is characterized by a modest ranking of 28th out of 190 economies in the World Bank’s Doing Business 2020 Report, reflecting some regulatory improvements. However, significant structural issues, including a biased judicial system favoring the state and high levels of corruption, continue to deter foreign direct investment. Additionally, the Strategic Sectors Law and various restrictions on foreign ownership, particularly in sensitive sectors, further complicate the investment landscape.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
