Financial Crime World

Belarus Takes Tough Stance on Money Laundering with Stringent Regulations

Belarus, a country notorious for its struggles with organized crime, has taken significant steps to combat money laundering by implementing robust regulations. The country passed the Law on Measures to Prevent the Laundering of Illegally Acquired Proceeds in 2005, establishing a legal and organizational framework to tackle money laundering and terrorist financing.

The Department of Financial Monitoring (DFM)

In 2003, Belarus created the Department of Financial Monitoring (DFM), its equivalent of a Financial Intelligence Unit (FIU). The DFM is responsible for:

  • Monitoring financial transactions
  • 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

Financial Institutions’ Requirements

Financial institutions in Belarus are required to disclose any financial transactions exceeding $27,000 to the DFM. The country has also implemented strict penalties for money laundering offenses, including:

  • Fines
  • Imprisonment up to 10 years

Regulation and Enforcement

Belarus’ Central Bank, the National Bank of the Republic of Belarus, is responsible for regulating most banking and financial institutions’ transactions. The bank’s Department of Bank Monitoring receives suspicious transaction reports from financial institutions and conducts investigations accordingly.

The country’s AML/CT regulatory framework is enforced by a range of agencies, including:

  • The General Prosecutor’s Office
  • Law enforcement agencies
  • The State Security Committee

These agencies work together to ensure the precise and consistent application of anti-money laundering laws.

International Standards Compliance

Belarus’ regulations are in line with international standards set by the Financial Action Task Force (FATF). The country is not on FATF’s list of countries recognized as having strategic AML shortcomings.

Additional Measures

In addition to its robust regulatory framework, Belarus requires financial institutions to adopt risk-based AML/CT processes and conduct:

  • Customer due diligence
  • Transaction monitoring
  • PEP screening
  • Adverse media monitoring

These measures are crucial in preventing money laundering and terrorist financing.

Effectiveness of Belarus’ Anti-Money Laundering Efforts

The country’s commitment to combating money laundering is evident in its robust regulatory framework and enforcement mechanisms. As a result, Belarus remains off the FATF list of countries with strategic AML shortcomings, demonstrating its effectiveness in tackling this critical issue.