Belgium Steps Up Anti-Money Laundering Efforts as Financial Crime Threats Rise

Introduction

As one of Europe’s wealthiest and most influential powers, Belgium is increasingly vulnerable to financial crime threats, including international money laundering and terrorism financing activities. In response, the country has built a robust regulatory framework for financial institutions, with a financial regulator overseeing compliance and imposing significant fines for non-compliance.

Regulatory Framework

Belgium’s Financial Services and Markets Authority (FSMA) plays a crucial role in enforcing anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations. Established in 2011, the FSMA has consolidated supervision of Belgium’s financial system, protecting transparency, fairness, and orderly market operation.

Key Players

• Financial Intelligence Processing Unit (CTIF): Responsible for collecting and processing AML/CFT data, including suspicious transaction reports.
• National Bank of Belgium: Works closely with the FSMA to conduct onsite inspections and verify AML/CFT compliance.
• Federal Public Service Economy: Collaborates with the FSMA to ensure effective implementation of AML/CFT regulations.

AML Regulations in Belgium

Belgium’s main AML/CFT legislation is the Law of 18 September 2017 on the Prevention of Money Laundering and Terrorist Financing, also known as the “AML Law.” The law transposes EU Anti-Money Laundering Directives, establishing a set of risk-based AML/CFT requirements for firms operating within Belgium’s jurisdiction.

Key Requirements

• Customer Due Diligence (CDD): Firms must conduct CDD measures to establish and verify customer identities.
• Ongoing Screening: Perform ongoing screening of adverse media sources, sanctions lists, and watchlists.
• Risk-Based Approach: Firms must assess the risk factors associated with each customer or transaction.

Additional Regulations

Belgium has implemented the Markets in Crypto Assets (MiCA) regulation, which will affect the AML/CFT treatment of crypto assets. The FSMA registry of crypto exchange service providers has been established, and new criminal offenses and sanctions related to crypto asset activities have been introduced.

Effective AML Compliance Solutions

Firms in Belgium must be prepared to search international data sources for customer involvement in risk factors set out in domestic legislation. To achieve effective screening compliance, firms should seek a solution with a global scope that can be tailored to their risk appetite and minimize false positive alerts.

Ripjar’s Labyrinth Screening Platform

• Built to achieve screening compliance in Belgium, the EU, and jurisdictions around the world.
• Informed by thousands of global data sources in real-time, including adverse media, sanctions lists, and watchlist updates.
• Delivers actionable intelligence in seconds, enabling firms to make important decisions quickly and confidently.

Conclusion

Belgium’s financial regulator has taken significant steps to strengthen AML/CFT regulations, imposing strict fines for non-compliance. Firms operating in the country must ensure they have effective AML compliance solutions in place to minimize risk factors and meet regulatory requirements.