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 GRECO's recommendations aimed at improving judicial independence and law enforcement autonomy. The country's corruption perception has worsened, dropping in rankings and indicating that corruption is particularly severe among higher government officials and in state procurement. Despite having anti-corruption laws in place, enforcement is weak, and corruption is often politically motivated, complicating efforts to accurately assess its extent.

The Belarusian economy has faced significant challenges due to ongoing sanctions and the regime's alignment with Russia, resulting in a modest growth of approximately 3.9% in 2023 following a 4.7% GDP decline the previous year. The government has implemented laws that facilitate the seizure of property from entities linked to 'unfriendly' states, while the banking sector struggles with sanctions that hinder access to hard currency, leading to a technical default on external debts. Despite these issues, the regime continues to seek foreign direct investment, primarily from Russia, while maintaining a restrictive environment for foreign businesses.

The investment climate in Belarus has significantly deteriorated due to ongoing human rights violations and international sanctions, particularly from the U.S. and EU, which have led to the expulsion from international organizations and severed trade ties with many countries. Despite recent amendments to investment laws aimed at attracting foreign direct investment, the regime's restrictive measures against investors from 'unfriendly' states, including property seizure and capital withdrawal limitations, have made Belarus a less appealing destination for foreign investment.