Financial Crime World

BELGIUM MAKES SIGNIFICANT PROGRESS IN FIGHTING FINANCIAL CRIME, FATF REPORTS

Strengthening Anti-Money Laundering Framework

Belgium has made substantial strides in strengthening its framework to combat money laundering and terrorist financing since its 2015 mutual evaluation by the Financial Action Task Force (FATF), a global anti-money laundering watchdog. As a result of this progress, the FATF has upgraded Belgium’s ratings on 15 out of 40 key recommendations.

Key Areas of Improvement

The country has demonstrated significant improvements in implementing effective measures to prevent financial crime. Some of the notable areas where progress has been made include:

  • Risk Assessment and Customer Due Diligence: Belgium has enhanced its risk assessment processes and implemented a risk-based approach, making it easier to identify high-risk customers.
  • National Cooperation and Coordination: The country has improved cooperation and coordination between national authorities, making it more effective in combating financial crime.

Upgraded Ratings on Key Recommendations

The FATF’s re-rating of Belgium reflects the country’s progress in addressing technical compliance deficiencies identified in its 2015 mutual evaluation report. Specifically, Belgium has seen improvements in the following areas:

  • Assessing risks and applying a risk-based approach (Recommendation 1)
  • National cooperation and coordination (Recommendation 2)
  • Customer due diligence (Recommendation 10)
  • Politically exposed persons (Recommendation 12)
  • Wire transfers (Recommendation 16)
  • Reliance on third parties (Recommendation 17)
  • Internal controls and foreign branches and subsidiaries (Recommendation 18)
  • Higher-risk countries (Recommendation 19)
  • Regulation and supervision of financial institutions (Recommendation 26)
  • Powers of supervisors (Recommendation 27)
  • Regulation and supervision of designated non-financial businesses and professions (DNFBPs) (Recommendation 28)
  • Statistics (Recommendation 33)
  • Sanctions (Recommendation 35)

Remaining Areas for Improvement

The FATF commends Belgium for its efforts to improve its technical compliance with several recommendations, including those related to transparency and beneficial ownership. However, the report notes that additional work is needed to address certain areas of concern.

Commitment to Financial Integrity

Belgium’s progress in strengthening its anti-money laundering and counter-terrorist financing framework demonstrates a strong commitment to protecting the integrity of its financial system and preventing financial crime.