Belarus Country Summary
Medium-High Risk
View full Ratings TableSanctions
Higher Concern
FATF AML Deficient List
Lower Concern
Terrorism
Lower Concern
Corruption
Higher Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower 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 adhere to sanctions imposed by the UN Security Council, which aims to maintain international peace through various measures. Since 1966, the Security Council has established 31 sanctions regimes, with 15 currently active, focusing on political settlements, nuclear non-proliferation, and counter-terrorism, while ensuring the rights of those targeted are considered.
In response to Belarus's support for Russia's invasion of Ukraine, the U.S. has imposed sanctions on Belarusian individuals and entities, particularly targeting its defense sector and financial institutions. The EU has also enacted restrictive measures against Belarus, reflecting its involvement in the conflict and addressing human rights violations, with ongoing monitoring and potential for further sanctions if conditions do not improve.
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 of GRECO's recommendations since 2012, which has led to a significant decline in its ranking on Transparency International's Corruption Perception Index. Corruption is prevalent in state administration and procurement, with the government often using corruption charges for political purposes, while the lack of an independent judiciary complicates the assessment of corruption's true extent. Additionally, Belarus is a hub for various criminal activities, including human trafficking and cyber crimes, exacerbated by an authoritarian regime that lacks transparency and accountability.
Economy
The Belarusian economy has shown signs of recovery with a growth of approximately 3.9% in 2023, following a significant contraction of 4.7% the previous year due to international sanctions and the withdrawal of foreign firms. However, the economy remains heavily influenced by the Lukashenka regime's policies, which include extensive state control and reliance on Russia as a primary market, while ongoing sanctions and legal restrictions continue to deter foreign investment and complicate economic stability.
The investment climate in Belarus has significantly deteriorated due to ongoing human rights violations and international sanctions, particularly from the U.S. and EU. Recent amendments to the investment law aim to attract foreign direct investment (FDI) through special contracts and support measures, but the environment remains hostile for investors from 'unfriendly' states, with restrictions on property rights and capital withdrawal. The regime's focus on aligning with Russia and the lack of judicial independence further complicate the investment landscape, making Belarus a less attractive destination for foreign capital.
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