Financial Crime World

Belarus’ KYC Regulations: A Compliance Overview for Identity Verification

In October 2019, Belarus enacted stringent Anti-Money Laundering (AML) andCountering the Financing of Terrorism (CFT) regulations. This article provides a summary of these regulations, focusing on the KYC procedures and identity verification requirements.

Definitions

Before diving into the details, some key terms are essential to understanding these regulations:

  • Client: Shufti Pro’s customer
  • Customer: The client’s end-user
  • End-user: The customer of Shufti Pro
  • Document Verification: The process of authenticating government-issued identity documents
  • Identity Verification: The process of verifying the identity of the end-user
  • Proof of Identity: Any valid government-issued identity document used to establish an individual’s identity

Identity Verification Requirements

Belarus regulations mandate that the following identity attributes must be obtained from official documents for natural persons’ identity verification:

  • Full name (last, first, and patronymic)
  • Citizenship
  • Date and place of birth
  • Address (permanent or temporary)

Compliant CDD Methods

Shufti Pro offers various methods to perform identity verification on behalf of the client:

  1. Verification via Independent Documents: Shufti Pro verifies the end-user’s identity based on the provided documents. These documents must be photo-based, biometric, and meet the requirements for identity verification.
  2. Document Verification: Shufti Pro guarantees the authenticity of submitted documents using a specialized Document Verification service. It checks various security features, such as holograms, tapered edges, and reflected colors, to ensure document integrity.

Proof of Identity and Address

Belarus considers the following documents as proof of identity:

  • Passport
  • Driving license
  • Other valid photo ID

Address verification can be carried out using:

  • Current utility bills (issued no more than three months ago)
  • Bank statements (issued no more than three months ago)
  • Documents issued by government departments

Timing and Verification

Identity verification is not a one-time process. It is required in multiple instances depending on the client’s requirements and risk levels. Clients should verify the identity of their end-users during onboarding and when handling transaction data.

Politically Exposed Persons (PEPs) and EDD Measures

Enhanced Due Diligence (EDD) requirements under Belarus regulations necessitate determining if an end-user is a politically exposed person (PEP), holds a public office, or exhibits a higher risk profile. Shufti Pro offers an AML Screening service that screens an individual’s selected identity attributes against global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.

Reliance on External Services

Belarus’ regulations recommend seeking the services of a third party to apply measures of due diligence. Clients must collect all necessary data from the third-party service provider without undue delay. Shufti Pro acts as the external third-party service provider in this scenario.

Record Retention

Clients are required to retain data for at least five years under Belarus’ regulations as part of their AML and KYC obligations. If the information is processed, collected, and managed by a relevant third party, the client must collect all necessary due diligence data from them without undue delay.

This article serves as an overview of Belarus’ KYC regulations, particularly focusing on identity verification procedures. Clients are encouraged to consult the official Belarusian legislation for further details and ensure full compliance with the regulations.