Belarus Country Summary
Sanctions
High Concern
FATF AML Deficient List
Low Concern
Terrorism
Low Concern
Corruption
High Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Low Concern
Offshore Finance Center
Low Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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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, must comply with UN sanctions aimed at maintaining international peace and security. The UN Security Council has established numerous sanctions regimes since 1966, which include economic sanctions and targeted measures like travel bans and arms embargoes, with a focus on protecting the rights of those affected.
In response to Belarus's support for Russia's invasion of Ukraine, the U.S. and EU have imposed extensive sanctions on Belarusian individuals and entities. These sanctions target various sectors, including finance and trade, and aim to hold the Lukashenka regime accountable for human rights violations and its role in facilitating illegal migration.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 33 |
| World Bank: Control of Corruption Percentile Rank | 27 |
Belarus has been declared non-compliant with anti-corruption standards by the Council of Europe, failing to address most recommendations aimed at strengthening judicial independence and law enforcement autonomy. The country's ranking in Transparency International's 2023 Corruption Perception Index has dropped, indicating worsening corruption, particularly in state administration and procurement sectors. Despite having anti-corruption laws and international agreements in place, the lack of independent judicial systems and the government's use of corruption charges for political purposes complicate the true assessment of corruption levels.
Economy
The Belarusian economy has faced significant challenges due to ongoing human rights violations and sanctions imposed by the U.S. and EU, leading to a deterioration in the business and investment climate. In 2023, the economy grew by approximately 3.9% following a previous decline, largely due to increased trade with Russia, but economists predict modest growth or stagnation through 2024. The regime has implemented laws that restrict foreign investment and property rights, further complicating the economic landscape.
The investment climate in Belarus has significantly deteriorated due to ongoing human rights violations and the regime's support for Russia's actions in Ukraine, leading to expulsion from international organizations and sanctions from the U.S. and EU. Recent amendments to investment laws introduced mechanisms for major projects and special contracts, but the environment remains hostile to foreign investors, particularly from 'unfriendly' states, with restrictions on capital withdrawal and property rights. The regime's selective enforcement of laws and lack of judicial independence further deter foreign investment, making Belarus a challenging destination for potential investors.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings