Financial Crime World

Title: Belarus Tackles Money Laundering: An Overview of Belarus’ Financial Crime Laws and Regulators

Introduction

Minsk, Belarus - In response to the pressing issue of organized crime and money laundering, Belarus has taken decisive steps to fortify its financial crime laws. This article provides an overview of Belarus’ AML/CFT (Anti-Money Laundering and Countering the Financing of Terrorism) regulations, the key regulators, and their functions.

Belarus’ Anti-Money Laundering Legislation and Regulators

  • Law on Measures to Prevent the Laundering of Illegally Acquired Proceeds (2005) - Belarus’ first AML legislation established the legal and organizational framework for combatting money laundering and terrorist funding.
  • Department of Financial Monitoring (DFM) - Established in 2003 as Belarus’ Financial Intelligence Unit (FIU), it monitors, gathers, and disseminates financial intelligence on behalf of the State Control Committee.

Requirements and Actions Taken Under the AML Law

  • Reporting of Suspicious Transactions - Financial institutions must report all transactions exceeding $27,000 to the DFM.
  • Cooperation with Legal Authorities - The DFM collaborates with law enforcement agencies for further action when analyzing evidence of money laundering.
  • Exclusion from FATF List of Strategic AML Shortcomings - Belarus’ commitment to combatting money laundering has been recognized by its exclusion from this list.

Other Regulators Overseeing AML/CFT and Proliferation Financing (CPF) Activities

  • National Bank of the Republic of Belarus - The central bank, as the relevant monitoring agency for most financial transactions, requires reporting of suspicious transaction information to its Department of Bank Monitoring.
  • Ministries and Committees - Other regulators include the Ministry of Finance, Ministry of Justice, Ministry of Communications and Informatization, Ministry of Antimonopoly Regulation and Trade, and State Property Committee.
  • Law Enforcement Agencies - Agencies like the State Border Committee, Ministry of Internal Affairs, State Customs Committee, Operational and Analytical Center, Financial Investigation Department of the State Control Committee, State Security Committee, and Investigative Committee are involved in countering money laundering and terrorist financing.

Regulatory and Legislative Framework

  • Relevant Laws - Key laws include the Law on Combating Terrorism (2002), Law on Prosecutor’s Office (2007), Law on Internal Affairs Agencies (2007), Law on Financial Investigations Agencies (2008), Law on Border Service Agencies (2008), Law on the State Control Committee and its Local Agencies (2010), Law on the Investigative Committee (2012), Law on State Security Agencies (2012), Law on Customs Regulation (2010), and the Code of Administrative Offences (2021).

Conclusion

Financial institutions in Belarus must adhere to FATF standards and implement risk-based AML/CFT processes to effectively detect and prevent money laundering, which include:

  • Customer Risk Assessments
  • Developing Anti-Money Laundering Strategies
  • Advanced Software Systems - e.g., Customer Due Diligence, Transaction monitoring, PEP screening, and Adverse media monitoring.