Belarus Cracks Down on Financial Crime: Tips for Prevention

The Belarusian government has introduced new regulations to prevent financial crime, including money laundering and terrorist financing. As part of these efforts, various entities are required to implement internal controls to ensure compliance with anti-money laundering (AML) legislation.

Key Responsibilities

• Develop internal control rules and provide special notifications in electronic form to the Financial Monitoring Department of the State Control Committee (FMD SCC).
• The FMD SCC may order the suspension of financial transactions based on its review of these notifications.

Identifying Beneficial Owners

Before conducting any financial transaction, parties must identify themselves, including: + First and last name + Passport information + Location + Other relevant details

Additionally, information about beneficial owners, founders, and other stakeholders can be requested.

Suspicious Transactions

Banks are required to report suspicious transactions to the FMD SCC. These include transactions exceeding 1,000 basic units (approximately EUR 9,300) within a calendar month related to: + The acquisition, use, or repayment of electronic money + If the origin of the funds cannot be determined

Additional Criteria for HTP Residents

For High-Tech Park residents, additional criteria have been established to reject financial transactions. These include: + Conducting transactions through a HTP resident with tokens based on the principle of complete anonymization + Making settlements on one financial transaction exceeding 2,000 basic units (approximately EUR 18,800) not by bank transfer or electronic money transfer

Tips for Prevention

To ensure compliance with AML regulations and avoid potential legal issues, organizations should be cautious when performing a number of financial transactions. Some key tips include:

• Implementing robust internal controls to monitor transactions
• Reporting suspicious transactions to the FMD SCC
• Ensuring that all parties involved in a financial transaction are properly identified and their beneficial ownership is disclosed

Conclusion

The Belarusian government’s efforts to prevent financial crime are aimed at protecting the country’s financial system from money laundering and terrorist financing. Organizations operating in Belarus must be aware of these regulations and take steps to ensure compliance. By implementing robust internal controls and reporting suspicious transactions, organizations can help to prevent financial crime and maintain a safe and secure financial environment.

Note: This article is intended as a general guide only and should not be considered as specific legal advice. Specialist advice should always be sought about your specific circumstances.