Financial Crime World

Belarus Takes Measures to Prevent Financial Crime

Strengthening Anti-Money Laundering Regime

In a bid to curb financial crime, Belarus has taken steps to strengthen its anti-money laundering (AML) regime. The country passed the Law on Measures to Prevent the Laundering of Illegally Acquired Proceeds in 2005, which provides a legal and organizational framework for combating money laundering and terrorist financing.

Key Provisions

  • Requires all financial institutions in Belarus to adhere to international standards and criteria outlined in AML legislation
  • Money laundering offenses are punishable by substantial penalties and up to 10 years in prison
  • Financial institutions must disclose transactions exceeding $27,000 to the Department of Financial Monitoring (DFM)

Department of Financial Monitoring

The DFM is responsible for gathering and disseminating financial intelligence. It also examines evidence of money laundering and forwards it to law enforcement agencies for prosecution.

Financial Intelligence Unit

Belarus has established a Financial Intelligence Unit (FIU) as part of the DFM, which plays a crucial role in monitoring and combating financial crime.

Central Bank’s Role

The Central Bank of Belarus monitors banking and other financial institution transactions. Suspicious transaction information must be reported to the bank’s Department of Bank Monitoring.

Other Agencies Involved

Other agencies involved in combating money laundering and terrorist financing include:

  • State Border Committee
  • Ministry of Internal Affairs
  • State Customs Committee
  • Operational and Analytical Center under the President of Belarus
  • Financial Investigation Department of the State Control Committee
  • State Security Committee

Regulatory Framework

Belarus’ AML/CFT regulatory framework is based on several laws, including:

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

Financial institutions must comply with these regulations to prevent financial crime.

Risk-Based AML/CFT Processes

Belarus has adopted risk-based AML/CFT processes, which require banks and other obligated organizations to conduct:

  • Customer due diligence
  • Transaction monitoring
  • PEP screening
  • Adverse media monitoring

International Recognition

The country’s efforts to prevent financial crime have been praised by international organizations, and its AML/CFT regime is considered one of the most effective in the region.