OREANDA-NEWS  On 14 November was announced, that Belarus’ President Alexander Lukashenko signed decree #22 on state guarantees of retail bank accounts and deposits and ordinance #601 on regulations of bank operations, the press service of the president reported.

Under the decree, the state guarantees individuals’ accounts with commercial banks and deposits with commercial banks denominated in Belarusian rubles or foreign currencies and compensates 100% of the total sum of retail accounts and deposits should the central bank revoke relevant banking licenses.

The decree does not apply to retail deposits and accounts of individual entrepreneurs.

The decree exempts from declaration deposits with Belarusian commercial banks, withdrawals of deposits and transfers of funds from foreign bank accounts and deposits to Belarusian banks.

Starting 2010, 80% of profits generated by the National Bank of Belarus (NBB) (based on its annual bookkeeping balance sheet) will be transferred to the state organization Agency for guaranteed compensation of bank deposits of individuals, while the rest of the profits will be used to increase the central bank’s charter capital, reserve fund, etc.

The mandatory contributions of banks and non-bank financial institution to the reserve of the Agency in accordance with the law of July 8, 2008 on guaranteed compensation of bank deposits are categorized as production expenses during taxation procedures. 

Belarusbank in the period January 1, 2009 through December 31, 2011 is to transfer to the reserve of the Agency 0.037% of the total sum of monetary resources of individuals on bank accounts and deposits as of the first day of the month following the reporting quarter in the first quarter of 2009 and increase transfers to the reserve of the Agency by 0.022% of the previous contribution every quarter that follows.

Starting January 1, 2012 the size of contributions for Belarusbank will be identified in accordance with the law on guaranteed compensation of bank deposits.

The central bank is expected to contribute 100 billion Belarusian rubles (Br) to form the assets of the Agency, and transfers from the republican budget will total 100 billion rubles.

The decree comes into effect on the day of its official publication.

Ordinance #601 exempts from registration in special record books of the NBB, commercial banks and non-bank financial institutions financial operations indicated in paragraph 5, part 1, article 6 of the law on measures to prevent money laundering and financing of terrorism of July 19, 2000, namely, financial operations totaling or exceeding 2,000 benchmark units (one unit stands at 35,000 Belarusian rubles) for individuals and 20,000 benchmark units for organizations and individual entrepreneurs and categorized as financial operations with cash resources, operations with bank accounts and deposits, international settlements and money transfers, operations with real property and moveable effects, operations with securities, lending operations involving international transfers, conversion of debts and assignment of claims.

The NBB and commercial banks will require identification of persons that conduct transactions totaling or exceeding 1,000 benchmark units.

The ordinance comes into effect 10 days after its official publication.