Changing requirements and new subjects: examining the novelties in anti-money laundering legislation

On May 13, 2020, Law No. 14-Z “On Amendments to the Law of the Republic of Belarus “On Measures to Prevent Money Laundering, Financing of Terrorist Activities and Financing of the Proliferation of Weapons of Mass Destruction” (hereinafter referred to as the Law, AML/CFT) was adopted. The changes will take effect on November 20, 2020.

The adopted changes to AML/CFT can be divided into several key blocks:

Changes in the list of persons carrying out financial transactions.

New persons who carry out financial transactions in accordance with AML/CFT are HTP residents, tax consultants, management organizations of investment funds, the Belarusian Currency and Stock Exchange, special financial organizations (hereinafter referred to as the SFO).

Expanding the competence of regulatory authorities and creating a special body

The competence of regulatory authorities in relation to persons carrying out financial transactions has been expanded. For example, government bodies exercising control over the activities of such persons will have the right to request and receive from controlled persons carrying out financial transactions information and information on issues related to activities within the framework of AML/CFT.

Additionally, they are given the right to conduct inspections and take preventive and precautionary measures.

Changes in risk assessment rules and approaches to internal control

The HTP administration is given control functions in relation to HTP residents when the latter carry out a number of operations, the list of which is also enshrined in the Law. The list of types of activities of HTP residents is open, but such activities must be associated with the use of digital signs (tokens) and with an increased risk of legalization (for example, signs of professional and exchange activities in securities, activities of investment funds).

It is worth noting that the legislator provided the HTP Administration with the opportunity to further determine the cases, conditions and timing of the development of the PIC.

Changing the list of cases for filling out a special form Leasing companies are given the right not to register financial transactions specified in paragraph. 5 hours 1 tbsp. 7 AML/CFT. The obligation to fill out a special form for transactions, regardless of the amount, with non-deliverable over-the-counter financial instruments is introduced for Forex companies, the National Forex Center, banks and non-profit financial institutions operating in the over-the-counter Forex market. Thus, filling out a special form will require additional data about the financial transaction (grounds for the transaction, number of participants, signs of suspicion, etc.) and greater control over them.

Other changes to the Law.

The Law provides the National Bank with the opportunity to determine other data necessary for the formation of an interbank identification system, which will require changes to the internal rules when establishing additional data to be taken into account. Introducing additional requirements may make the procedure more stringent.

The list of information received by persons carrying out financial transactions when identifying client organizations has been expanded.

Author:PaulineSachava, legal assistant

GRATA International, Belarus