Title: Belgian Banks Call for Collaborative Platform to Combat Money Laundering Following FinCEN Files Scandal

In the wake of the FinCEN Files investigation exposing the role of Belgian banks in money laundering activities, top banking executives in Belgium have advocated for the creation of a new collaborative platform to bolster information-sharing with Belgian authorities and other financial institutions.

Executives Appeal for Legislation to Boost Cooperation

During a heated hearing before the Belgian parliament’s finance committee last week, banking representatives from major institutions such as ING Belgium, KBC Bank, Belfius Bank and Insurance, and BNP Paribas Fortis called for legislation enabling the establishment of a secure system for the exchange of suspected money laundering information.

Banks’ Role Beyond Reporting Suspicious Transactions

Marc Raisière, CEO of Brussels-based Belfius, underscored the importance of banks engaging as a “real partner” in the fight against money laundering, emphasizing that their role should extend beyond merely reporting suspicious transactions to the anti-money laundering unit.

EU-Level Measures and Interbank Cooperation

These proposals coincide with recent agreements from EU finance ministers to establish a new EU-level body with enhanced supervisory powers over certain institutions and the authority to assume regulatory functions from national regulators in exceptional cases. The plan also emphasizes EU-wide harmonization of anti-money laundering rules and strengthening the coordination and support of national financial intelligence units.

FinCEN Files and Belgian Banks’ Role in Money Laundering

The FinCEN Files – a global investigation involving over 400 journalists and more than 2,100 confidential reports from the Financial Crimes Enforcement Network – exposed that Belgian banks had facilitated transactions for various international criminals, including drug cartels, corrupt regimes, and arms traffickers.

###Models for Interbank Cooperation

Bank officials cited the United Kingdom’s Joint Money Laundering Intelligence Taskforce as a model for interbank cooperation in the fight against money laundering. The task force, which comprises over 40 financial institutions, regulators, and law enforcement agencies, emphasizes the significance of an “umbrella platform” for secure communication between banks and government.

Enhancing Effective Risk Management

Marianne Collin, Belfius’s chief risk officer, also advocated for access to a government list of “politically exposed persons” and a greater role in viewing the ultimate beneficial owners registry to help banks monitor financial activity more effectively.

Belgian Financial Institutions’ Risk Profiles and Compliance Systems

One official from the National Bank of Belgium revealed that one in five financial institutions in the country held a high-risk profile for anti-money laundering. The FinCEN Files investigation identified over 365 reports with Belgian connections, with 179 of these involving ING Belgium. Since 2013, the NBB’s Sanctions Committee had imposed only four administrative fines on Belgian banks, each worth between €50,000 and €350,000.

Strong Commitment to Anti-Money Laundering Efforts

Bank officials and regulators defended their anti-money laundering efforts and expressed their commitment to improving compliance systems and adding staff. Febelfin’s CEO, Karel Baert, clarified that a Belgian bank appearing in a FinCEN report did not mean there was an inherent problem; instead, it is possible for banks to act as intermediaries in a broader chain, with the court determining if money laundering concerns existed.