Financial Crime World

Belgian Banks Tackle Financial Crime with Stricter Regulations

In an effort to combat financial crime, the Belgian government has introduced a series of new banking regulations aimed at strengthening governance and supervision. These measures, which came into effect last year, aim to bring the country’s banking sector in line with international standards.

A Renewed Focus on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT)

The new regulations place a strong emphasis on AML and CFT, requiring Belgian banks to implement robust risk management systems and reporting procedures. Additionally, banks are now required to establish dedicated AML/CFT units within their organizations.

Key Requirements

  • Implement robust risk management systems
  • Establish dedicated AML/CFT units
  • Report suspicious transactions
  • Maintain customer due diligence files
  • Ensure effective risk management systems

International Standards Take Center Stage

The new regulations reflect the European Union’s Fourth Anti-Money Laundering Directive, which sets out a range of requirements for EU member states. The directive requires banks to report suspicious transactions, maintain customer due diligence files, and ensure that their risk management systems are effective.

Additional Requirements

  • Prevent the misuse of financial institutions by third-country nationals or entities
  • Demonstrate a genuine economic interest in Belgium
  • Provide detailed information about beneficial owners

Liquidity Rules Tightened

The Belgian central bank, NBB, has introduced stricter liquidity rules for banks, requiring them to maintain higher levels of liquid assets on hand. The move aims to ensure that banks have sufficient funds available to meet their short-term obligations in times of stress.

New Liquidation Rules

  • Minimize disruption
  • Ensure a smooth transition for customers and employees

The Belgian banking sector is undergoing significant changes as a result of these reforms. Banks are investing heavily in new technologies and risk management systems to meet the evolving regulatory landscape.

As the industry continues to evolve, it remains to be seen how these regulations will impact the competitiveness of the Belgian financial sector. However, one thing is clear: the government’s commitment to combating financial crime has brought a renewed focus on governance and supervision to the banking sector.