Belgium Steps Up Efforts to Combat Financial Crime

In an effort to prevent money laundering and terrorist financing, the Belgian government has implemented a series of new regulations aimed at strengthening its defenses against financial crime. The measures outlined in the country’s latest anti-money laundering (AML) report reflect a growing recognition of the need for effective action to tackle the threats posed by financial crime.

Progress Made in Key Areas

The AML report assesses Belgium’s progress against international standards set by the Financial Action Task Force (FATF). The country has made significant strides in several key areas, including:

• Assessment of Risk and Application of a Risk-Based Approach: Belgium has demonstrated compliance with this requirement.
• National Cooperation and Coordination: The country has made progress in implementing effective national cooperation and coordination mechanisms.
• Creation of a Money Laundering Offense: Belgium has created a money laundering offense, which is compliant with international standards.

Areas for Improvement

While Belgium has made progress in several areas, there are still some key challenges to be addressed. For example:

• Targeted Financial Sanctions Related to Terrorism and Terrorist Financing: Belgium remains partially compliant in this area.
• Customer Due Diligence: The country’s customer due diligence procedures need improvement.
• Record Keeping: Belgium’s record keeping practices require enhancement.
• Regulation and Supervision of Financial Institutions: The regulation and supervision of financial institutions needs strengthening.

Key Recommendations

To further strengthen its AML regime, the Belgian government is urged to take action in several key areas, including:

Improve Customer Due Diligence Procedures

• Enhance customer due diligence procedures to prevent money laundering and terrorist financing.
• Implement effective risk-based approach to customer due diligence.

Enhance Record Keeping Practices

• Strengthen record keeping practices to ensure accurate and complete records are maintained.
• Implement effective data retention policies.

Strengthen Regulation and Supervision of Financial Institutions

• Increase regulatory oversight of financial institutions to prevent money laundering and terrorist financing.
• Implement effective risk-based approach to regulation and supervision.

Increase Transparency and Beneficial Ownership Requirements for Legal Persons and Arrangements

• Enhance transparency requirements for legal persons and arrangements.
• Implement beneficial ownership requirements to prevent anonymous shell companies.

International Cooperation

Belgium’s AML efforts are closely tied to international cooperation. The country is encouraged to continue working with its global partners to share intelligence, best practices, and expertise in the fight against financial crime.

Conclusion

While Belgium has made significant progress in recent years, there remains much work to be done to strengthen its defenses against financial crime. By addressing key challenges and implementing new regulations, the Belgian government can further enhance its AML regime and contribute to a safer and more secure financial system for all.