Anti Money Laundering (AML) in Belarus

Belarus is susceptible to money laundering due to its vast problems with organized crime. In order to combat the threat of money laundering, Belarus issued the Law on Measures to Prevent the Laundering of Illegally Acquired Proceeds in 2005. This Anti Money Laundering (AML) law established the legal and organizational framework to prevent money laundering and terrorist financing. All financial institutions in Belarus must adhere to the rules and measures described in the AML law. The Law makes money laundering crimes punishable by heavy fines and up to ten years in prison.

In 2003, Belarus established the Department of Financial Monitoring (DFM), the Belarusian equivalent of a Financial Intelligence Unit (FIU). The DFM operates within the State Control Committee and it is in charge of monitoring, gathering and disseminating all financial intelligence. All evidence of money laundering is analyzed by the DFM and passed on to law enforcement officials for prosecution. Belarus requires that financial institutions report all financial transactions that exceed 27,000 USD to the DFM.

The Economy of Belarus

The economy of Belarus remained relatively well-developed following the disintegration of the U.S.S.R. in 1991. Thanks to its high education level and extensive agricultural base, Belarus has flourished in recent years, and it has one of the highest standards of living among the countries of the former U.S.S.R. Inflation is high in Belarus, but it is decreasing. The majority of the country’s growth can be credited to the re-export of Russian oil at market prices.

Belarus’ economy thrives off of peat, its most valuable mineral resource, which is used for fertilizer and fuel. Other natural resources include chalk, clay, potassium salt and phosphorite. Lumbering plays a large role in Belarus’ economy, since one third of the country is covered by forest.

Banking in Belarus

The National Bank of the Republic of Belarus is the Central Bank of Belarus. It was established in 1992, after the collapse of the Soviet Union. The National Bank is guided by the Constitution of the Republic of Belarus and the Banking Code of the Republic of Belarus. The Bank’s main objectives are producing the Belarusian Ruble and ensuring its stability, purchasing power and exchange rate to foreign currencies; developing and strengthening the banking system; and ensuring efficient, secure and reliable functioning of the payment system.

The National Bank of the Republic of Belarus is the relevant monitoring agency for most of the transactions conducted by banking and other financial institutions. All information on suspicious transactions must be reported to the National Bank’s Department of Bank Monitoring.

Currency in Belarus

The Belarusian Ruble (BYR) is the national currency of Belarus. Banknotes are available in denominations of 1, 5, 10, 20, 50, 100, 500, 1,000, 5,000, 10,000, 20,000, 50,000 and 100,000 Rubles. No coins are used in Belarus for circulation and only a small amount of commemorative coins are produced.

The Belarusian Ruble has only been in circulation since 1992, with the Russian Ruble being previously used as the standard currency throughout the Soviet Union. It was not until 1994 that the Belarusian Ruble became the official national currency.

Belarus is mainly a cash-based country. Credit cards are not readily accepted as payment in the countryside and villages. Areas that do accept credit cards have a less favorable exchange rate and may charge customers additional money for the privilege of having a credit card.

Other Key Statistics of Belarus

Time Zone: UTC+2 (7 hours ahead of Washington, DC during Standard Time).

Daylight Savings Time: +1hr, begins last Sunday in March; ends last Sunday in October.

Location: Eastern Europe, east of Poland.

Population: 9,685,768 (July 2008 est.).

Labor Force: Approximately 51.3% work in the services industry, 34.7% in industry and 14% in agriculture. The unemployment rate is approximately 1.6%.

Languages Spoken: Belarusian and Russian.

Trade Organizations: Belarus is a member of the United Nations (UN) and an observer of the World Trade Organization (WTO).