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Belarus Struggles to Combat Financial Fraud

Minsk, Belarus - Despite its efforts to combat money laundering and terrorist financing, Belarus remains vulnerable to financial fraud due to its extensive challenges with organized crime.

Anti-Money Laundering Legislation

The country’s Anti-Money Laundering (AML) legislation, passed in 2005, provides a legal framework to prevent the laundering of illegally acquired proceeds. The law requires financial institutions to disclose transactions exceeding $27,000 to the Department of Financial Monitoring (DFM).

Challenges with Organized Crime

However, despite these efforts, Belarus has not been able to eliminate all forms of financial fraud. According to experts, the country’s banking sector remains a prime target for criminal activity. The Central Bank of Belarus, responsible for regulating the banking system, has taken steps to improve supervision and monitoring, but more needs to be done.

Measures to Combat Financial Fraud

The National Bank of Belarus, the country’s central bank, has implemented measures to combat financial fraud. The bank requires all suspicious transaction information to be reported to its Department of Bank Monitoring. Additionally, the Ministry of Finance, Ministry of Justice, and other government agencies are involved in monitoring and enforcing AML/CFT regulations.

Financial Action Task Force Report

Despite these efforts, Belarus still faces challenges in combating financial fraud. According to a recent report by the Financial Action Task Force (FATF), the country has made significant progress in implementing its AML/CFT regime, but more work needs to be done to address remaining gaps.

New Regulations

In response to these challenges, the government has introduced new regulations aimed at strengthening AML/CFT controls. The Code of Administrative Offences, which came into effect in 2021, sets out penalties for non-compliance with AML/CFT requirements.

Financial Institutions’ Responsibilities

Financial institutions are required to:

  • Adopt risk-based AML/CFT processes
  • Conduct regular customer due diligence
  • Develop a proportionate anti-money laundering strategy
  • Monitor transactions regularly using software that includes mechanisms and processes for identifying customers and tracking their transactional activity

Challenges Remain

Despite these efforts, Belarus still faces significant challenges in combating financial fraud. The country’s banking sector remains vulnerable to criminal activity, and more needs to be done to strengthen AML/CFT controls.