Financial Crime World

Belarus Fights Financial Crime with Tough Laws and Regulations

Belarus has long been plagued by organized crime, leading to concerns about money laundering in the country. In response, the government has passed several laws and regulations aimed at combating money laundering and terrorist financing.

The Law on Measures to Prevent the Laundering of Illegally Acquired Proceeds

In 2005, Belarus passed the Law on Measures to Prevent the Laundering of Illegally Acquired Proceeds, which established a robust legal framework to combat money laundering and terrorist financing. The law requires all financial institutions in Belarus to adhere to strict standards and criteria.

Penalties for Non-Compliance

For those found guilty of money laundering offenses, penalties range from substantial fines to up to 10 years in prison.

The Financial Intelligence Unit (FIU) and Department of Financial Monitoring (DFM)

Belarus’ FIU is responsible for monitoring and disseminating financial intelligence. The DFM requires financial institutions to disclose transactions exceeding $27,000.

Measures to Prevent Suspicious Transactions

  • Financial institutions must disclose transactions exceeding $27,000 to the DFM.
  • Belarus has demonstrated its commitment to combating money laundering by avoiding inclusion on the Financial Action Task Force’s list of countries with strategic anti-money laundering shortcomings.

The Central Bank of Belarus and Department of Bank Monitoring

The Central Bank of Belarus plays a crucial role in monitoring banking and other financial institution transactions. The Department of Bank Monitoring is responsible for receiving suspicious transaction reports.

National Bank’s Role

  • Ensures the stability and reliability of the country’s payment system.

Belarus’ AML/CFT Regulatory Framework

Belarus’ AML/CFT regulatory framework is comprised of several key laws and regulations, including:

  • Law on Combating Terrorism
  • Law on Prosecutor’s Office
  • Code of Administrative Offences

Key Players in Combating Money Laundering and Terrorist Financing

  • General Prosecutor’s Office
  • Law enforcement agencies:
    • State Border Committee
    • Ministry of Internal Affairs
    • Investigative Committee

Recent Developments and Future Outlook

Belarus has continued to strengthen its AML/CFT regulations, with new laws and amendments introduced to improve the country’s financial crime prevention measures. As a result, Belarus remains a key player in the global effort to combat financial crime and terrorism.

What Companies Operating in Belarus Need to Know

  • Comply with strict AML/CFT regulations.
  • Adopt risk-based processes to identify customers, track transactions, and screen for politically exposed persons (PEPs) and adverse media reports.
  • Help prevent financial crime and ensure a secure and reliable financial system in Belarus.