Financial Crime World

Title: Belgian National Bank’s Renewed Commitment to Combating Money Laundering and Terrorist Financing

The Belgian National Bank (NBB) continues its unwavering stance against money laundering and terrorist financing (ML/TF) within the Belgian financial sector. In this article, we examine Belgium’s regulatory framework, sectoral assessments, and key communications from the NBB.

1. Belgian Anti-ML/TF Legislation 🇧🇪

The National Bank of Belgium enforces a robust legislative framework, consisting of:

  • Primary Laws: The Anti-Money Laundering Law of 18 September 2017 and the Anti-Money Laundering Regulation of the NBB from 21 November 2017. Relevant preparatory works include the Amending Law of 20 July 2020 and the Anti-Money Laundering Law of 11 January 1993.

  • Regulations: The NBB enforces these primary laws through additional regulations.

1.1. Sectoral Risk Assessments 📊

To determine and evaluate ML/TF risks within the Belgian financial sector, the National Bank of Belgium conducts periodic sectoral risk assessment reports:

  • Latest Evaluation (2023): “Sectoral assessment of the risks of money laundering and terrorist financing in Belgian financial institutions subject to the supervisory authority of the National Bank of Belgium.”

Previous reports include those from 2020 and earlier years.

1.2. Circulars and Communications 📫

The NBB maintains frequent communication with financial institutions:

  • Recent Publications: Communications from 13 March 2024, 10 October 2023, and 15 February 2022.

  • Topics Covered: Guidance on AMLCO activity reports, prudential expectations regarding de-risking, and due diligence obligations when dealing with funds from abroad.

Previous circulars and communications date back to 12 July 2016.

1.4. Financial Sanctions 💰

Belgian financial sanctions for asset freezing and embargoes are regulated by the Treasury. These measures aim to prevent and counter terrorism financing and nuclear proliferation.

2. European Union 🇪🇺

At the European level, Belgium adheres to anti-ML/TF regulations:

  • Fourth and Fifth Anti-Money Laundering Directives: These directives establish a standardized regulatory framework for European Union member states.

  • Regulation 2015/847: This regulation on information accompanying transfers of funds ensures uniformity when transferring funds between EU member states.

The NBB collaborates with various EU Institutions and Bodies to assess ML/TF risks impacting the internal market and develop common strategies.

3. International Organizations 🌍

The National Bank of Belgium participates in international organizations like the Financial Action Task Force (FATF):

  • Collaboration with FATF: Belgium has undergone three mutual evaluations from the FATF and is striving for compliance with their international standards.

Stay tuned for more updates on the National Bank of Belgium’s ongoing efforts to combat money laundering and terrorist financing within the Belgian financial sector and beyond.