Financial Crime World

Belgium’s Anti-Money Laundering Law: Obligations and Procedures for Financial Institutions Reporting to CTIF-CFI

The Anti-Money Laundering (AML) Law in Belgium outlines strict reporting requirements for financial institutions regarding suspicious transactions. This article provides an overview of the reporting procedures for financial institutions to the Financial Intelligence Unit (CTIF-CFI).

Reporting to CTIF-CFI: An Overview

Territorial Scope

The obligation to report suspicions to CTIF-CFI applies to all Belgian and foreign financial institutions, as well as their branches in Belgium. Financial institutions based in other European Economic Area (EEE) countries offering services through agents or distributors in Belgium are also subject to these reporting requirements.

Reporting Entities and Procedures

The Anti-Money Laundering Law mandates reporting entities to submit their suspicions to CTIF-CFI through the Anti-Money Laundering Compliance Officer (AMLCO) in most cases. However, employees or representatives of financial institutions may report directly to CTIF-CFI, when the usual procedure cannot be followed. European financial institutions using agents or distributors in Belgium can report through their designated central contact point.

Obligations and Recommendations

Financial institutions are expected to submit their reports in writing or electronically using CTIF-CFI’s procedures. The reporting should contain essential details about the reporting entity, customer, transaction, and any accompanying documents to aid investigations.

Conditions and Timeframes for Reporting

Principle of Reporting Before the Transaction

  • Financial institutions should generally submit their suspicions to CTIF-CFI before carrying out the transaction, unless it’s not possible or delaying the transaction could hinder investigations.
  • Certain transactions, such as manual foreign exchange transactions, are exempted from pre-transaction reporting. Reporting can occur immediately after the transaction provided there’s a valid reason.
  • In cases where reporting after the transaction is essential to prevent evasion, financial institutions may report to CTIF-CFI after completing the transaction but must inform them about the reasons for the delay.

Prompt Reporting After the Transaction

  • Financial institutions are obliged to submit their reports to CTIF-CFI “immediately” after carrying out a transaction. This requirement introduces an obligation to act quickly within their organization and throughout their reporting process.

Additional Obligations and Requests from CTIF-CFI

  • Article 48 of the Anti-Money Laundering Law stipulates that financial entities are obliged to follow up on CTIF-CFI’s requests for additional information within the set time limits. They should also report any new information that could impact or change the initial reporting immediately.

In conclusion, the Anti-Money Laundering Law in Belgium dictates strict reporting requirements for financial institutions regarding suspicious transactions. Compliance with these regulations is crucial in preventing and mitigating financial crimes, as well as maintaining the confidence and trust of the public and other financial institutions.