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Banking Compliance Checklist in Belgium: A Must-Have Guide for Financial Institutions

As financial institutions operating in Belgium, ensuring compliance with banking regulations is crucial to avoid penalties and maintain a good reputation. This comprehensive checklist provides an overview of the key requirements and guidelines that banks must adhere to.

Legislation

  • The Belgian Act on Banking, Finance and Insurance (Wet van 2 augustus 1993 betreffende de bank-, financiële en verzekeringsdiensten) regulates banking activities in Belgium.
  • The EU’s Capital Requirements Regulation (CRR) and Directive (CRD) also apply to Belgian banks.

Regulatory Bodies

  • The National Bank of Belgium (Nationale Bank van België/Nationale Bank van België), the country’s central bank, is responsible for supervising and regulating banking activities.
  • The Financial Services and Markets Authority (Autorité des services et marchés financiers/Autoriteit voor financiële diensten en markten) oversees the prudential supervision of banks.

International Standards

  • The Bank for International Settlements (BIS) sets global standards for bank regulation and supervision, which are implemented in Belgium through the CRR and CRD.

Licensing

  • Banks must obtain a license from the National Bank of Belgium to operate in Belgium.
  • The licensing process involves meeting capital requirements, demonstrating sound governance, and passing a fit-and-proper test.

Rules on Liquidity

  • Banks must maintain adequate liquidity levels to ensure they can meet their short-term obligations.
  • The CRR sets out minimum liquidity requirements for banks.

Foreign Investment Requirements

  • Foreign investors wishing to acquire a stake in a Belgian bank must obtain approval from the National Bank of Belgium and the Ministry of Finance.

Liquidation Regimes

  • In the event of a bank’s insolvency, a liquidator is appointed by the court to manage the winding-up process.
  • The law prioritizes the payment of deposits and other protected claims.
  • The EU’s Banking Union has introduced stricter capital requirements and supervisory standards for banks.
  • The National Bank of Belgium is increasingly focusing on risk-based supervision, with a greater emphasis on identifying and addressing potential risks to financial stability.

This comprehensive checklist provides a valuable resource for financial institutions operating in Belgium, helping them navigate the complex regulatory landscape and ensure compliance with banking regulations.