Belarus to Take Risk-Based Approach to Anti-Money Laundering and Counter-Terrorism Efforts

The Government of Belarus has announced a new initiative to assess the risk of non-commercial organizations (NCOs) involved in money laundering and terrorist financing activities. This move is part of efforts to strengthen anti-money laundering and countering the financing of terrorism (AML/CFT) measures.

Risk-Based Approach

According to Viachaslau Reut, Director of the Financial Monitoring Department of Belarus, the new assessment will help identify NCO forms with low, medium, and high risk of involvement in money laundering and terrorism financing activities. The assessment will also inform further regulations on the NCO sector and prevent their involvement in unlawful activities.

Consolidating Approaches

The initiative is part of a broader effort to consolidate approaches on AML/CFT issues among CIS countries. Olga Tissen, Head of the Legal Department of the Russian Federal Financial Monitoring Service, noted that Belarus and Russia share similar ways of countering the use of NCOs for extremist and terrorist activities.

Concerns and Criticisms

However, critics have raised concerns about the decision, citing the 2018 FATF methodology which showed no risk in the nonprofit sector. Furthermore, the 2018 national AML/CFT risk assessment conducted by Belarus found that NCOs were not involved in financing terrorism and money laundering activities.

Civil society groups have also expressed concerns, citing allegations of abuse of AML/CFT measures to crack down on their operations. Since July 2021, more than 650 CSOs have been involuntarily dissolved in Belarus, with accusations of violating technical rules for publishing AML/CFT reports among the grounds for liquidation.

New International Center

The government’s move comes as CIS countries work towards establishing a new body for assessing risks of legalization (laundering) of proceeds from crime and financing of terrorism. The International Center for Assessing Risks of Legalization (Laundering) of Proceeds from Crime and Financing of Terrorism is expected to be established soon.

Call for Transparency and Accountability

The development has raised concerns among civil society groups, who have called for transparency and accountability in the government’s efforts to strengthen AML/CFT measures.