Belgium Intensifies Efforts Against Financial Crimes: Whistleblower Protection Key to Success

Brussels - Belgium has introduced sweeping reforms aimed at strengthening its whistleblower protection laws, intensifying prosecution efforts against social fraud and modern slavery, and enhancing cross-border cooperation with EU authorities.

New Belgian Whistleblowing Act

In February 2023, the new Belgian Whistleblowing Act came into force, imposing stringent obligations on companies to set up reporting channels and procedures for whistleblowers. Failure to comply could result in administrative fines or criminal penalties.

“The new law is a significant step forward in protecting whistleblowers who report wrongdoing in the workplace,” said [Name], a leading expert in financial crime investigation techniques. “It’s essential that companies take whistleblower complaints seriously and ensure that internal investigations are conducted impartially and transparently.”

European Public Prosecutor’s Office (EPPO) Efforts

The EPPO has launched new prosecutions targeting evasion of customs duties, fraud affecting EU financial interests, and specific types of VAT-fraud. These efforts have resulted in a significant uptick in enforcement action against cross-border criminal conduct.

New EU Directive on Sanctions Violations

The EU has concluded negotiations for a new directive harmonizing criminal law standards and penalties for sanctions violations across the bloc. The new rules will impose stricter penalties on companies found guilty of violating sanctions, making it even more challenging for businesses to comply with the rapidly evolving sanctions landscape.

Belgian authorities are stepping up their efforts against social fraud, social dumping, and modern slavery, particularly in high-risk sectors such as construction and transportation. Large-scale investigations and prosecutions are being encouraged by social law chain liability schemes, which can have far-reaching consequences for companies found guilty of these offenses.

Improving Access to Electronic Evidence

The EU has adopted a legislative package aimed at facilitating cross-border access to e-Evidence, making it easier for national authorities to obtain and preserve digital data from service providers across borders. Belgian criminal authorities are also focusing on improving their ability to access electronic evidence in criminal investigations.

Targeting Crypto Assets Derived from Criminal Activities

Belgian authorities are increasingly targeting crypto assets that are derived from criminal activities, as they encounter difficulties in tracking, freezing, and confiscating digital assets. The authorities are expected to adopt a more assertive approach to seizing these assets, using innovative methods to prevent suspects from accessing them.

Environmental Law Enforcement

Looking ahead to 2024, environmental law enforcement is likely to become a major priority for Belgian authorities. The EU has recently concluded an agreement on a proposal for a new directive on the protection of the environment through criminal law, which provides for new environmental crimes and harmonizes criminal penalties.

Key Predictions for 2024

Increased enforcement against social fraud, social dumping, and modern slavery
Growing scrutiny of companies’ environmental impact
In-house legal teams must stay vigilant and proactive in order to mitigate risks and ensure compliance with rapidly changing regulations.