Title: Belgian Banks Propose Information-Sharing Platform to Combat Money Laundering
Belgian Banks Urge Collaboration to Enhance Anti-Money Laundering Efforts
In response to increasing international pressure to combat money laundering, a group of major Belgian banks have proposed the establishment of a secure platform for information exchange with Belgian authorities and relevant entities. This announcement was made during a testimony session before the Belgian parliament’s finance committee.
Major Belgian Banks Speak Out
- ING Belgium
- KBC Bank
- Belfius Bank and Insurance
- BNP Paribas Fortis
Updating Legislation for Enhanced Collaboration
The banks called for updated legislation to facilitate collaboration between financial institutions and the government in detecting and preventing money laundering transactions. Marc Raisière, the CEO of Brussels-based Belfius, emphasized their urgent request to become active partners in the fight against money laundering.
“We cannot remain passive observers. We need to engage and actively collaborate in the detection and prevention of money laundering activities in Belgium.” – Marc Raisière, CEO of Belfius
Response to FinCEN Files Investigation
Belgium’s proposal follows the recent agreement among European Union finance ministers to create a new EU-level supervisory body. They also supported harmonizing anti-money laundering rules across Europe and EU-wide coordination and support for national financial intelligence units.
The recent FinCEN Files investigation, a collaborative journalistic effort that exposed banks’ role in processing illicit funds, led to the initial hearings in the Belgian parliament. Several local banks, including De Tijd, Knack, and Le Soir, were named in suspicious activity reports.
High-Risk Financial Institutions
An official from the National Bank of Belgium revealed that approximately 20% of financial institutions in the country have been classified as high-risk entities.
Proposed Solutions
Karel Baert, the CEO of banking sector trade group Febelfin, proposed an “umbrella platform” for inter-institutional communication between financial institutions and the government. This would help banks share information and collaborate more effectively in combating money laundering.
Belfius’s chief risk officer, Marianne Collin, called for the government to provide banks with lists of “politically exposed persons” to monitor their financial activities.
Banks requested greater access to the National Bank of Belgium’s register of ultimate beneficial owners.
Past Suspicious Activity Reports
Between 1999 and 2017, banks with US operations transferred over $2 trillion in suspicious payments. These transactions potentially implicated clients in 170 countries and territories. Among the 2,100 reports in the FinCEN Files, 365 were linked to Belgium, with 179 reports pertaining to ING Belgium.
Commitment to Strengthening Compliance Systems
Despite concerns, both bank officials and regulators reaffirmed their commitments to strengthening their compliance systems and personnel. Karel Baert maintained, “A report to the American anti-money laundering unit does not automatically signify that there is a money laundering problem. It simply indicates that the bank acted as an intermediary in such a transaction.”