Financial Crime World

Belarus Shows Effective Efforts in Combatting Terrorism Financing and Money Laundering

Minsk, Republic of Belarus - A Model for Combating Financial Crimes

The Republic of Belarus has made significant strides in combating terrorism financing (TF) and money laundering (ML), according to a recent report. The country’s authorities have demonstrated a robust understanding of the risks associated with TF and ML, and have implemented measures to prevent the misuse of its financial system.

Effective Practices

  • Identifying Persons Involved in Terrorist Activities: Belarus’ authorities have identified persons involved in terrorist activities and monitored those suspected of financing terrorism.
  • Preventing Non-Profit Organizations (NPOs) from Financing Terrorism: The country has taken steps to prevent the use of NPOs for TF purposes, ensuring that these organizations are not used as a front for illicit activities.
  • Unified Legal Framework and Single Competent Authority: Belarus has established a unified legal framework and single competent authority responsible for combating the financing of proliferation of weapons of mass destruction and terrorism.

Financial Institutions and Designated Non-Financial Businesses and Professions

  • Understanding AML/CFT Obligations: Belarus’ financial institutions (FIs) and designated non-financial businesses and professions (DNFBPs) have demonstrated a good understanding of anti-money laundering and combating the financing of terrorism (AML/CFT) obligations.
  • Mitigating ML/TF Risks: These entities have taken measures to mitigate ML/TF risks through enhanced customer due diligence, monitoring of transactions, and reporting suspicious activities.

Areas for Improvement

  • Limited Approach to Raising Awareness of NPOs: While Belarus has made progress in identifying types of NPOs at risk of being used for TF purposes, there is a limited approach to raising awareness of the sector and understanding TF risks.
  • Insufficient Resources for Identifying Politically Exposed Persons (PEPs) and Beneficial Owners: The country’s DNFBPs may not have sufficient resources to properly identify PEPs and beneficial owners.

Recommendations

  • Raise Awareness of TF Risks in NPO Sector: Continue to raise awareness of TF risks in the NPO sector and improve understanding of these risks among DNFBPs.
  • Strengthen Resources for Identifying PEPs and Beneficial Owners: Strengthen resources for identifying PEPs and beneficial owners among DNFBPs.
  • Develop Specialized Criteria for AML/CFT Risk-Based Supervision: Develop specialized criteria for AML/CFT risk-based supervision that take into account AML/CFT risk factors.

Conclusion

Belarus has made significant progress in combating TF and ML, but continued efforts are needed to strengthen its AML/CFT framework and address remaining vulnerabilities. By implementing these recommendations, the country can further demonstrate its commitment to preventing financial crimes and maintaining a robust financial system.