Financial Crime World

Belarus Struggles with Money Laundering Despite Efforts to Combat It

Belarus, a country plagued by organized crime, has been identified as vulnerable to money laundering. To combat this issue, the government passed the Law on Measures to Prevent the Laundering of Illegally Acquired Proceeds in 2005, providing a legal and organizational framework for preventing money laundering and terrorist funding.

Under this law, all financial institutions in Belarus are required to follow strict standards and criteria outlined by the Anti-Money Laundering (AML) legislation. Those found guilty of money laundering offenses can face substantial penalties and up to 10 years in prison.

Financial Monitoring Department

Belarus has established the Department of Financial Monitoring (DFM), which serves as the country’s version of a Financial Intelligence Unit (FIU). The DFM is responsible for:

  • Monitoring, gathering, and disseminating financial intelligence on behalf of the State Control Committee
  • Examining evidence of money laundering and forwarding it to law enforcement agents for prosecution

Disclosure Requirements

The country requires financial institutions to disclose any transactions exceeding $27,000 to the DFM. Belarus has also avoided being listed as a country with strategic AML shortcomings by the Financial Action Task Force (FATF).

Central Bank Involvement

The Central Bank of Belarus plays a crucial role in monitoring banking and other financial institution transactions. The bank’s Department of Bank Monitoring is responsible for receiving suspicious transaction information from financial institutions.

Law Enforcement Agencies Involved

Several law enforcement agencies are involved in countering money laundering and terrorist financing in Belarus, including:

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

AML/CFT Regulatory Framework

Belarus has a comprehensive AML/ CFT regulatory framework that includes several laws and regulations, such as:

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

These laws aim to prevent money laundering, terrorist financing, and other financial crimes.

Compliance Requirements

To comply with FATF standards, Belarusian banks, financial institutions, and other obligated organizations must adopt risk-based AML/CFT processes, including:

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

By adopting these measures, companies can effectively prevent money laundering and terrorist financing in Belarus.

Importance of AML/CFT Software

It is essential for AML/CFT software to include mechanisms and processes for identifying customers and tracking their transactional activity regularly. Companies interested in discovering the advanced features of an AML solution should contact us to request a demo.