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.

Belarus has been declared non-compliant with anti-corruption standards by the Council of Europe, failing to address most of the recommendations made in 2012, which has led to a decline in its ranking on Transparency International's Corruption Perception Index. Corruption is prevalent at all levels of government, particularly in sectors like public procurement and construction, with high-level corruption occurring with little accountability. Although Belarus has enacted anti-corruption laws and is a party to several international agreements, enforcement remains weak, and corruption is often used for political purposes.

The Belarusian economy experienced a growth of approximately 3.9% in 2023, recovering from a 4.7% decline in GDP the previous year, largely due to increased trade with Russia and government stimulus measures. 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. Most economists predict modest growth or stagnation through the end of 2024 as the regime continues to face significant 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 legislative changes have introduced mechanisms for investment agreements and special contracts, but the environment remains hostile for foreign investors, particularly from 'unfriendly' states, with laws allowing for property seizure and restrictions on capital withdrawal. The regime's focus on aligning with Russia further complicates the investment landscape, as selective enforcement of laws and lack of judicial independence deter potential investors.