Financial Crime World

Belgium Tightens Loops on Money Laundering and Terrorism Financing

Brussels, Belgium - In a bid to combat the scourge of money laundering and terrorist financing, Belgium has strengthened its laws and institutions to prevent the misuse of its financial system.

Strengthened Laws and Institutions

The country’s Financial Intelligence Processing Unit (CTIF) plays a crucial role in detecting and preventing the laundering of criminal proceeds. The CTIF chairs the Assembly of Partners, which works together with other stakeholders to identify risks and develop policies to prevent money laundering.

Key Component: Law of 18 September 2017

A key component of Belgium’s fight against money laundering is its Law of 18 September 2017, which transposes the EU’s 4th Anti-Money Laundering Directive into national law. The law imposes a duty on financial institutions and professionals to report suspicious transactions to the CTIF, and provides for criminal penalties for those found guilty of money laundering.

Enforcement Component: Article 505 of the Penal Code

The enforcement component of Belgium’s anti-money laundering efforts is strengthened by Article 505 of the Penal Code, which covers three types of behavior that can constitute the crime of money laundering:

  • Dealing in stolen goods
  • Converting or transferring criminal proceeds to hide their illegal origin
  • Concealing the nature, source, location, or ownership of assets

Enhanced Cooperation between Authorities

To enhance cooperation between authorities, the Law of 5 May 2019 has amended the Code of Criminal Procedure to allow for the exchange of information between law enforcement agencies. The public prosecutor can now request information on financial transactions and virtual assets related to suspects from financial institutions and other authorities.

Combating Terrorism Financing

Belgium is also committed to combating the financing of terrorism and its proliferation. The country has adopted the 40 recommendations of the Financial Action Task Force (FATF) against money laundering, terrorist financing, and proliferation. These recommendations cover areas such as:

  • Legal systems
  • Measures taken by financial institutions
  • Institutional arrangements
  • International cooperation

Evaluation and Compliance

Belgium was evaluated by the FATF in February 2015 and must now respond to its remarks to be considered fully compliant with the recommendations. The country’s National Security Plan includes a dedicated chapter on combating terrorism financing, and Belgium can count on the support of the 38-member FATF group and two regional organizations, the European Union and the Gulf Cooperation Council.

Conclusion

With these strengthened laws and institutions in place, Belgium is well-equipped to combat money laundering and terrorist financing, and protect its financial system from illegal activities.