Financial Crime World

Belgium Takes Significant Steps to Combat Financial Crime

Enhanced Efforts to Strengthen AML/CFT Framework

In a move aimed at strengthening its defenses against money laundering and terrorist financing, Belgium has made significant strides in addressing technical compliance deficiencies identified in a 2015 mutual evaluation report. The country’s progress has been recognized by the Financial Action Task Force (FATF), which has re-rated Belgium on 15 of the 40 Recommendations.

Periodic Review Highlights Improvements

As part of an enhanced follow-up process initiated after the adoption of its mutual evaluation, Belgium submitted a report to the FATF detailing the steps taken to strengthen its anti-money laundering and counter-terrorist financing (AML/CFT) framework. The FATF’s periodic review assesses the effectiveness of Belgium’s AML/CFT measures and their compliance with international standards.

Key Areas of Improvement:

  • Risk Assessment and Risk-Based Approach: Belgium has made notable improvements in assessing risks and applying a risk-based approach.
  • National Cooperation and Coordination: The country has strengthened national cooperation and coordination to combat financial crime.
  • Customer Due Diligence: Belgium has improved its customer due diligence measures, including enhanced verification procedures for customers.
  • Politically Exposed Persons: The country has implemented stricter controls on transactions involving politically exposed persons.
  • Wire Transfers: Belgium has enhanced its wire transfer mechanisms to prevent money laundering and terrorist financing.

FATF Ratings Update

The FATF has re-rated Belgium to Compliant for Recommendations 1, 2, 10, 12, 16, 17, 18, 19, 26, 27, 28, 33, 35, and maintained the ratings for Recommendations 5, 8, and 21.

Ongoing Efforts to Strengthen AML/CFT Framework

The review also highlights Belgium’s progress in meeting the requirements of FATF Recommendations that have changed since its 2015 mutual evaluation. Specifically, the country has made significant strides in addressing technical compliance deficiencies identified in Recommendations 6, 7, 13, 14, 23, 34, and 40.

Next Steps:

While the review acknowledges these improvements, it notes that further work is needed to achieve full compliance with several Recommendations. The FATF welcomes Belgium’s commitment to ongoing efforts to strengthen its AML/CFT framework and looks forward to continued progress in this area.