Eurasian Group (EAG)

Home » About EAG























Eurasian Group on combating money laundering and financing of terrorism (EAG)

Overview

The EAG was established on October 6, 2004 in Moscow, by decision of the Inaugural Conference.

7 EAG member states: Belarus, China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan.

EAG observers:

  • 16 states: Afghanistan, Armenia, Georgia, Germany, France, India, Italy, Japan, Lithuania, Moldova, Poland, Turkey, Turkmenistan, Ukraine, United Kingdom, USA;
  • 12 international organizations: Collective Security Treaty Organization (CSTO), Commonwealth of Independent States (CIS) Executive Committee, Council of Europe (MONEYVAL), Eurasian Economic Community (EurAsEC), European Bank for Reconstruction and Development (EBRD), Financial Action Task Force (FATF), International Monetary Fund (IMF), Interpol, Organization on Security and Cooperation in Europe (OSCE), Shanghai Cooperation Organization (SCO), United Nations Office on Drugs and Crime (UNODC), World Bank.
The EAG Chairman is Mr. Oleg Markov (Russia), Head of the Financial Monitoring Federal Service of the Russian Federation (Rosfinmonitoring).

The EAG Deputy Chairwoman is Ms. Tazhikan Kalimbetova (Kyrgyzstan), Minister of economy and finance of Kyrgyzstan.

A group of Rosfinmonitoring staff have been operating as the EAG Secretariat with proper training background and office facilities.

The EAG primary objective consists in ensuring efficient cooperation and interaction throughout the Eurasian region and integration of the EAG member states into the international AML/CFT system conformant to the FATF Recommendations, international conventions, relevant UN Security Council Resolutions and agreements of the EAG member states.

The EAG key tasks
  • promotion of the FATF 40+9 Recommendations and other AML/CFT international standards throughout Eurasia and their implementation by the EAG member states;
  • design and delivery of the joint AML/CFT training projects within the FIU sphere of competence;
  • mutual evaluations of the AML/CFT regime in EAG member states;
  • coordination of cooperation programs with international organizations, working groups and relevant states;
  • ML/FT typologies research and good practice exchange in addressing issues of concern considering regional particularities;
  • provision of technical assistance to the EAG member states.
Working Groups. To implement the EAG Key Tasks three EAG working groups have been operating:
1. Working Group on Mutual Evaluations and Legal Issues (WGEL),
2. Working Group on Typologies (WGTYP),
3. Working Group on Technical Assistance (WGTA).

Status with FATF. EAG is an observer to FATF and a FATF-style regional body (FSRB). To comply with the new FATF requirements towards FSRBs proper measures have been taken. EAG applied to FATF for an associate member status.

Plenaries. EAG held 7 Plenaries, which drew interim summaries and set further tactics.

Consultations with the private sector. The second EAG consultations with the private sector took place in October 2007, in Alamty (Kazakhstan). The Consultations with Banking and Insurance Sectors proved advisability of an outreach to the private sector in highlighting EAG’s activities and receiving proper feedback.

The first EAG consultations with the private sector took place in December 2006, in Moscow. The Consultations with Banking and Insurance Sectors proved advisability of an outreach to the private sector in highlighting EAG’s activities and receiving proper feedback.

Donor Conferences. The 1st and the 2nd Conferences of the EAG Donors States and Organizations were hold in December 2005-2006 in Moscow. The 3rd Conferences of the EAG Donors States and Organizations took place in Sanya (China) and addressed issues of donors’ current and eventual involvement in the technical assistance provision to the EAG member states.

Technical assistance. 5 technical assistance needs assessment on-site missions took place in Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. The missions results were used in further technical assistance provision to the EAG member states.

Mutual evaluations. EAG carries out mutual evaluations of its member states consistent with the FATF AML/CFT assessment methodology 2004. In 2005-2006 Russia hosted 3 EAG evaluator training seminars/workshops delivered jointly by EAG donors, with further continuance in the near prospect.

The joint FATF/EAG mutual evaluation of China. The on-site visit to China took place in November 2006 with the participation of the EAG.

The EAG mutual evaluation of Kyrgyzstan. The on-site visit to Kyrgyzstan took place in 2007.

The joint World Bank/EAG mutual evaluation of Tajikistan. The on-site visit to Tajikistan took place on June 2007.

The joint FATF, MONEYVAL and EAG mutual evaluation of Russia since September 2007.

The EAG mutual evaluations of Belarus and Uzbekistan are scheduled on 2nd and 4th quarter of 2008.

The Schedule of the EAG mutual evaluations

# Country Evaluated by On-site visit FATF Plenary discussion EAG Plenary discussion
1.                     China FATF/EAG Nov. 12 -24, 2006 June 2007 December 2007
2.                     Kyrgyzstan EAG Jan. 28 –Feb. 5, 2007   June 2007
3.                     Tajikistan World Bank/EAG June 2007   May 2008
4.                     Kazakhstan EAG 2nd quarter 2009   Dec. 2009
5.                     Russia FATF/Moneyval/EAG Sept. 2007 June 2008 Dec. 2008
6.                     Belarus EAG 2nd quarter 2008   Dec. 2008
7.                     Uzbekistan EAG 4th quarter 2008   May 2009


Typologies. The EAG ML/FT typologies research focuses on examining specific ML/TF techniques and methods with the view of producing sufficient data to permit relevant public entities to duly address issues of concern.

The EAG 2005 research topics included
  • “Use of Non-Resident Organizations for Reinvestment of Proceeds from Crime into the Economy (Through Offshore Companies)”;
  • “Use of Fraudulent VAT Pay-back Schemes in Exports of Goods and Services for the Purpose of Obtaining Proceeds from Crime and Their Laundering”;
  • “A Glancing Research on Alternative Remittance Systems in the Eurasian Region”.
The works have been published.

The EAG 2006 research topics included
  • “Use of Offshore Companies and Offshore Jurisdictions for Money Laundering”;
  • “Use of Non-commercial Organizations for Terrorism Financing”;
  • “Legalisation of the Proceeds from Illegal Trafficking of Drugs and Psychotropic Substances”.
The works have been published.

The EAG 2007 research topics include
  • “Typologies of Terrorism Financing”;
  • “Cash-based Schemes for Money Laundering”;
  • “Legalisation of the Proceeds from Illegal Trafficking of Drugs and Psychotropic Substances” (continuing research).
The works have been published.

The EAG 2008 research topics include:
  • “Transnational movement of cash”;
  • “Legalization of proceeds from illegal trafficking in drugs, psychotropic substances as well as its precursors”.


Funding for EAG has been granted generally by the Russian Federation, which allocated 1.0 million USD in 2004, 3.5 million USD in 2005, 5.3 million USD in 2006. China covered most expenses for the 2nd EAG Plenary meeting (April 2005, Shanghai) and co-sponsored the FATF/EAG Joint Experts’ Meeting on Typologies (November 2006, Shanghai). 2.0 million USD were contributed by Russia (Rosfinmonitoring) into the Autonomous Non-Commercial Organization "International Training and Methodological Center of Financial Monitoring" (ITMCFM), which was established in Moscow according to the decision of the Government of the Russian Federation in December 2005. Along with the EAG Secretariat Advisors the ITMCFM constitutes a part of the EAG supporting infrastructure.







Upcoming events

 8th EAG Plenary
 July 14-18, 2008, Kyrgyzstan;

 EAG mutual evaluation of Belarus
 3nd quarter of 2008;
 EAG Seminar on Typologies and Consultations with the Private Sector
 September 23-27, 2008




For authorized users