AML in Belarus

Overview
Due to its ongoing struggles with organized crime, Belarus remains susceptible to money laundering activities. In response to this challenge, Belarus introduced the Law on Measures to Prevent the Laundering of Illegally Acquired Proceeds in 2005 as a countermeasure against money laundering. This Anti-Money Laundering (AML) legislation established the necessary legal and organizational framework to combat money laundering and the financing of terrorist activities. All financial institutions operating within Belarus are obligated to adhere to the standards and criteria stipulated in the AML law. The law stipulates substantial penalties and up to a decade of imprisonment for individuals found guilty of money laundering offenses.
In 2003, Belarus established the Department of Financial Monitoring (DFM), analogous to a Financial Intelligence Unit (FIU), to address these concerns. The DFM holds the responsibility of monitoring, collecting, and disseminating financial intelligence on behalf of the State Control Committee. Additionally, the DFM investigates any indications of money laundering and forwards relevant evidence to law enforcement agencies for further action. Belarus mandates that financial institutions report any financial transactions exceeding $27,000 to the DFM. Furthermore, it’s noteworthy that Belarus is not included on the FATF’s roster of countries flagged for significant AML deficiencies.
The Central Bank of Belarus
The National Bank of the Republic of Belarus serves as the central bank for the country. Established in 1992 following the dissolution of the Soviet Union, it operates under the framework of the Republic of Belarus’ Constitution and the Republic of Belarus’ Banking Code. The Bank’s core objectives encompass the production of the Belarusian Ruble while upholding its stability, purchasing power, and exchange rate against global currencies. Additionally, it strives to enhance and expand the banking sector and ensure the efficiency, security, and reliability of the payment system.
Playing a pivotal role, the National Bank of the Republic of Belarus functions as the overseeing authority for numerous banking and other financial institutions’ transactions. As a result, any instances of suspicious transactions necessitate reporting to the Department of Bank Monitoring within the National Bank.
AML/CFT Regulators
In line with Article 16 of Law No. 165- dated June 30, 2014, oversight of financial transaction activities in the realm of AML/CFT/CPF is conducted by various authorities, including the National Bank, Ministry of Finance, Ministry of Justice, Ministry of Communications and Informatization, Ministry of Taxes and Duties, Ministry of Antimonopoly Regulation and Trade, and State Property Committee. Moreover, the precise and consistent application of AML/CFT/CPF laws is overseen by the General Prosecutor of the Republic of Belarus and its subordinate prosecutors.
Law enforcement entities within the Republic of Belarus engaged in combating money laundering and terrorist financing comprise:
– State Border Committee of the Republic of Belarus
– Ministry of Internal Affairs of the Republic of Belarus
– State Customs Committee of the Republic of Belarus
– Operational and Analytical Center under the President of the Republic of Belarus
– Financial Investigation Department of the State Control Committee of the Republic of Belarus
– State Security Committee of the Republic of Belarus
– Investigative Committee of the Republic of Belarus
AML/CFT Regulations
The regulatory and legislative framework for AML/CFT in the Republic of Belarus encompasses the following statutes:
– The Republic of Belarus Law No. 77-З of January 3, 2002, “On Combating Terrorism”
– The Republic of Belarus Law No. 220-З of May 8, 2007, “On Prosecutor’s Office of the Republic of Belarus”
– The Republic of Belarus Law No. 263-З of July 17, 2007, “On Internal Affairs Agencies of the Republic of Belarus”
– The Republic of Belarus Law No. 414-З of July 16, 2008, “On Financial Investigations Agencies of the State Control Committee of the Republic of Belarus”
– The Republic of Belarus Law No. 454-З of November 11, 2008, “On Border Service Agencies of the Republic of Belarus”
– The Republic of Belarus Law No. 142-З of July 1, 2010, “On the State Control Committee of the Republic of Belarus and its Local Agencies”
– The Republic of Belarus Law No. 403-З of July 13, 2012, “On the Investigative Committee of the Republic of Belarus”
– The Republic of Belarus Law No. 390-З of July 10, 2012, “On State Security Agencies of the Republic of Belarus”
– The Republic of Belarus Law No. 129-З of January 10, 2014, “On Customs Regulation in the Republic of Belarus”
– The Republic of Belarus Code of Administrative Offences No. 91-З of January 6, 2021