Financial Crime World

Belarus Braces for Battle Against Financial Crime

In a bid to curb the scourge of financial crime, Belarus has strengthened its anti-money laundering (AML) regime, requiring financial institutions to adhere to strict standards and criteria outlined in the AML law.

Passed in 2005, the AML law provides a legal and organizational framework for combating money laundering and terrorist funding. Offenses are punishable by substantial penalties and up to 10 years in jail.

The Department of Financial Monitoring (DFM)

Belarus has created the DFM, its version of a Financial Intelligence Unit (FIU), which is responsible for monitoring, gathering, and disseminating financial intelligence on behalf of the State Control Committee. The DFM examines any evidence of money laundering and forwards it to law enforcement agents for prosecution.

Disclosure Requirements

Financial institutions are required to disclose transactions exceeding $27,000 to the DFM, a move aimed at preventing illegal activities such as money laundering and terrorist financing.

A Robust Regulatory Framework

Belarus has set up a robust regulatory framework, with multiple agencies working together to combat financial crime. These agencies include:

  • The Central Bank of Belarus: responsible for monitoring most banking and other financial institutions’ transactions
  • The National Bank of the Republic of Belarus: oversees compliance with AML regulations
  • The State Control Committee: monitors compliance with AML regulations
  • General Prosecutor’s Office
  • Ministry of Internal Affairs
  • State Customs Committee
  • Operational and Analytical Center under the President
  • Financial Investigation Department
  • State Security Committee

FATF Recognition

Belarus is not on the Financial Action Task Force (FATF) list of countries recognized as having strategic AML shortcomings, a testament to its efforts in combating financial crime.

Regulations to Prevent Money Laundering and Terrorist Financing

Belarus has implemented various regulations aimed at preventing money laundering and terrorist financing. These include:

  • Laws on combating terrorism
  • Prosecutor’s office laws
  • Internal affairs agency laws
  • Financial investigations agency laws
  • Border service agency laws
  • State control committee laws
  • Investigative committee laws
  • State security agency laws
  • Customs regulation laws
  • Administrative offenses code

Complying with FATF Standards

To comply with FATF standards, banks and financial institutions must adopt risk-based AML/CFT processes to deal with the AML/CFT threats they face. This includes:

  • Conducting customer due diligence
  • Transaction monitoring
  • PEP screening
  • Adverse media monitoring

A Proactive Approach

Belarus is taking a proactive approach in combating financial crime, and its efforts are paying off. The country’s financial institutions are now required to adopt robust AML/CFT processes, and the government is working closely with international partners to ensure compliance with global standards.

By implementing these measures, Belarus is demonstrating its commitment to combating financial crime and protecting its financial system from illicit activities.