Title: “Banks as Crime Fighters: How Financial Institutions in Belgium are Leading the Charge Against Money Laundering and Terrorist Financing”
Banks as First Lines of Defense
In the war against financial crime, Belgian banks are playing a critical role as frontline defenders, determined not to be unwitting accomplices in money laundering or inadvertent financiers of terrorism. Last year, banks reported a total of 17,678 suspicious transactions to the Financial Intelligence Processing Unit (FIPU), contributing to 55% of the money laundering cases forwarded to the judiciary.
Investing in Capabilities
These efforts are not taken lightly, and banks are investing heavily to enhance their capabilities. In 2019, over 60% of financial institutions planned to hire additional staff, and 89% of employees had undergone at least one Anti-Money Laundering (AML) training. Furthermore, investments in infrastructure totaled over 93 million euros, not just for personnel but also to automate processes such as onboarding, screenings, and transaction monitoring. Currently, 95% of these screening processes are automated.
Collaboration between Public and Private Stakeholders
However, banks cannot tackle this issue alone. During a parliamentary hearing on the FinCen Files in November 2020, Febelfin called for increased collaboration between private and public stakeholders. With promising results, the AML collaboration platform officially launched on June 18, 2021. The platform brings together Assuralia, CFI, Febelfin, FSMA, NBB, and the government. Together, they aim to:
- Uncover new trends, developments, and criminal methods
- Identify countries where new shell companies are being established
- Ensure a more prompt and effective response
Quote from a Participating Bank
“We cannot fight financial crime in isolation,” said a representative of one of the participating banks. “The launch of the AML collaboration platform aligns perfectly with the sector’s desire to work closely with stakeholders in this important mission.”
Upcoming Insights
Stay tuned for more insights on the latest trends, developments, and methods employed by banks in their ongoing battle against money laundering and terrorist financing in our upcoming storytelling piece, ‘Banks: Crime Fighters Unmasked’.