Belarus Country Summary
Sanctions
EU and US Financial and Arms Embargo
FATF AML Deficient List
No
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
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Anti Money Laundering
FATF Status
Belarus is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Belarus was undertaken in 2019. According to that Evaluation, Belarus was deemed Compliant for 12 and Largely Compliant for 25 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 5 of the Effectiveness & Technical Compliance ratings.
Sanctions
Belarus, as a UN member, is obligated to support UN sanctions aimed at maintaining international peace and security. The UN has established 31 sanctions regimes since 1966, addressing various threats through measures like economic sanctions and arms embargoes, while ensuring the rights of those targeted are considered. As of October 2023, there are 15 ongoing sanctions regimes focused on political conflict resolution, nuclear non-proliferation, and counter-terrorism, administered by a sanctions committee of the Security Council.
The UK National Crime Agency has issued a Red Alert regarding Russia's attempts to evade sanctions through intermediary countries, including Belarus. The alert highlights various red flags for suspicious transactions, particularly involving goods on a Common High Priority list, which includes items critical to military operations. Additionally, international sanctions against Belarus have intensified due to its support for Russia's actions in Ukraine, with the US and EU implementing extensive measures targeting individuals and sectors linked to the Lukashenka regime.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 37 |
| World Bank: Control of Corruption Percentile Rank | 32 |
Belarus has been declared non-compliant with anti-corruption standards by the Council of Europe, failing to address most of GRECO's recommendations since 2012, which has led to a decline in its ranking on Transparency International's Corruption Perception Index. Corruption is prevalent across various sectors, particularly in state administration and procurement, with the government often using corruption charges for political purposes. Despite having anti-corruption laws and being a party to several international treaties, enforcement remains weak, and high-level corruption continues to occur with little accountability.
Economy
The Belarusian economy experienced a growth of approximately 3.9% in 2023, recovering from a 4.7% decline in GDP the previous year, primarily due to increased trade with Russia and government economic stimulation. However, the economy remains under pressure from international sanctions, a lack of foreign investment, and restrictive laws that have led to a hostile environment for private businesses, particularly those linked to 'unfriendly' states. Economists predict modest growth or stagnation through 2024 as the country grapples with ongoing economic challenges.
The investment climate in Belarus has significantly deteriorated due to ongoing human rights violations and sanctions imposed by the U.S. and EU, leading to a loss of international partnerships and a decline in foreign direct investment (FDI). Recent amendments to investment laws aim to attract investments for major projects and import substitution, but the regime's restrictive measures against foreign investors from 'unfriendly' states, including property seizures and capital withdrawal limitations, create a hostile environment. Additionally, the lack of judicial independence and selective enforcement of laws further deter potential investors.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
