EU blacklists Russia for money laundering: decision comes into force

The decision to add Russia to the European Union's "blacklist" on money laundering came into force on January 29, the twentieth day after publication, as it has not been repealed by the European Parliament or the European Council.

Before that, the head of EU diplomacy, Kaya Kallas, reminded that the EU is doing this to make it harder for Russia to finance the war in Ukraine.

"I think that any way to put pressure on Russia to force it to conduct real negotiations is a good thing, and we will move in that direction," said a European official.

The European Commission officially added Russia to the list of countries with a high risk of money laundering and terrorist financing on December 3, 2025.

This measure will require financial institutions to strengthen due diligence on all transactions of organizations and individuals connected to Russia and will force banks that have not yet taken action against Russia to do so in order to reduce risks.

The EU's decision also increases the risks associated with cooperation with Russia for third countries. Financial institutions in non-EU countries, such as China, India, and the United Arab Emirates, will likely be forced to reduce such cooperation to avoid deteriorating relations with EU banks. This will increase the cost of transactions with foreign partners and extend processing times.

Putting the Russian Federation on the EU's blacklist, as experts believe, will hit ordinary citizens the hardest, especially those who live in EU countries or regularly use the European financial system.

Already today, Russians are massively closing accounts and being refused services, formally citing the banks' internal policies, but in fact due to the status of the Russian Federation as a high-risk jurisdiction.

After being blacklisted, banks will conduct in-depth verification of the origin of funds, request additional documents, and block transactions until explanations are received. Transaction speed will decrease, and some payments will be automatically rejected by internal compliance algorithms.

Central Asian banks, which are now actively used by Russians for remittances, will also be under pressure: they will have to choose between maintaining transactions with Russian citizens and the risk of losing correspondent accounts in the EU.

Usually, the European Commission's list mirrors the list of the world's largest specialized association, the FATF (Financial Action Task Force). In 2023, it suspended Russia's membership but did not put the country on the gray or black lists, despite Ukraine's insistence. China, India, Saudi Arabia, and South Africa were against it.

• In its appeals to the FATF, Ukraine emphasized Russia's financial and military cooperation with high-risk countries such as North Korea and Iran, as well as the financing of private military groups such as the Wagner Group and their illegal activities.The Ministry of Finance of Ukraine has previously stated that Russia's alliance with the DPRK should also be a basis for finally blacklisting Russia by the FATF.
• In June, the EU added Monaco and Venezuela to the list of countries that pose a high risk of money laundering and terrorist financing. The UAE, Gibraltar, Barbados, Panama, Jamaica, the Philippines, Senegal, and Uganda were removed from the list.