Belgian Regulators Crack Down on Financial Crimes: Penalties for Institutions Hindering Inspections and Money Laundering Infractions

Strict Penalties for Obstructing Inspections and Money Laundering Infractions in Belgium

The Belgian National Bank (NBB) has imposed strict penalties for institutions falling under its supervision that hinder inspections or violate the country’s Anti-Money Laundering (AML) Law.

Penalties for Individuals

Two specific criminal offenses have been identified for individuals. Consequences for obstructing NBB inspections, refusing to disclose AML-required information, or intentionally providing incorrect or incomplete information include:

• A term of between one month and one year in prison
• Finces ranging from €250,000 to €2,500,000 based on Article 36/20, §1, of the Law Establishing the Organic Statute of the NBB.

Individuals found in violation of Article 67 of the AML Law, restricting the use of cash, may face criminal fines between €250,000 and €225,000, capped at ten percent of the illegal payment or donation.

Penalties for Legal Entities

These offenses are subject to the provisions of the Belgian Criminal Code, particularly Chapter VII and Article 85. For legal entities, criminal fines can be extended to their senior management members, governing bodies, or agents.

Intervention by NBB in Criminal Proceedings

In cases concerning financial institutions, the NBB is granted permission to intervene at any stage of the criminal proceedings against offending parties. No demonstration of harm is required for this intervention to take place, as long as it adheres to the applicable civil party rules.

Reporting Offenses to the Belgian Public Prosecutor

Significantly, Article 90/1 of the AML Law mandates the NBB to inform the Belgian Public Prosecutor of these offenses if they occur in the exercise of the NBB’s supervisory powers relative to any particular financial institution.