Money Laundering laws: Ukraine woos in Davos
Ukraine is mounting a charm offensive against FATF sanctions. Prospects of success? Just a little bit.
Faced with continued Financial Action Task Force blacklisting, Russian ministers went on a charm offensive at various inter-governemtal meetings and agreed to meet Tony Blair acting as President Bush's envoy trying to gain support for attacks on Iraq. They sent Blair packing with a flea in his ear the day the FATF removed Russia from its blacklist.
Now, Ukraine is mounting its own PR campaign - getting off the list is a long way off and a greater imperative is to have the countermeasures removed. Several countries have told their financial institutions to treat as suspicious all business with the Ukraine.
At the World Economic Forum in Davos, Premier Viktor Yanukovych told anyone that would listen that the country is dedicated to meeting FATF demands. Back home, First Deputy Premier Mykola Azarov has told Deputies to expect a hard session on 29th December when they meet - he is demanding that they thrash out laws that will appease the FATF.
But the current proposals do not seem likely to succeed; at least not yet. They will require the making of regulations for monitoring and reporting by 1 June 2003. Whilst the FATF will see this as progress (and it will be), it is too little, too slow.
Ukraine will remain frozen out of the world's financial services system for a little longer yet.
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