Belarus Country Summary

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 faces significant challenges related to crime and corruption, with a notable lack of compliance with international anti-corruption standards and a judicial system that lacks independence. The authoritarian regime has been accused of using corruption charges for political purposes, while organized crime networks, often linked to Russian groups, engage in various illegal activities, including human trafficking and drug trafficking, exacerbated by state complicity in some cases.

The economy and investment climate in Belarus have significantly deteriorated due to ongoing human rights violations under the Lukashenka regime and its support for Russia's aggression in Ukraine. The country has faced expulsion from international development organizations, severed trade ties with most partners, and has been subjected to extensive sanctions, leading to a technical default on external debts and a decline in its international credit rating. While the Belarusian economy saw a modest growth of approximately 3.9% in 2023, largely driven by increased trade with Russia, the outlook remains bleak with predictions of stagnation or modest growth through 2024, compounded by restrictive laws targeting foreign investments and a lack of judicial independence that deters foreign capital.