Financial Crime World

Belgium Enhances Anti-Money Laundering and Counter-Terrorist Financing Framework

Stronger AML/CFT Measures Earning Belgium a Re-Rating from FATF

In a significant development, Belgium has made substantial progress in strengthening its anti-money laundering and counter-terrorist financing (AML/CFT) framework. This enhanced follow-up process was initiated after the adoption of Belgium’s 2015 mutual evaluation report, which assessed the effectiveness of their AML/CFT measures and compliance with FATF Recommendations.

Key Areas of Improvement

Belgium has reported back to the Financial Action Task Force (FATF) on the progress made in addressing technical compliance deficiencies identified in the mutual evaluation report. The country’s efforts have led to a re-rating on 15 out of the 40 FATF Recommendations, with significant improvements in the following areas:

  • Assessing Risks and Applying a Risk-Based Approach: Recommendation 1
  • National Cooperation and Coordination: Recommendation 2
  • Customer Due Diligence: Recommendation 10
  • Politically Exposed Persons: Recommendation 12
  • Wire Transfers: Recommendation 16
  • Reliance on Third Parties: Recommendation 17
  • Internal Controls and Foreign Branches and Subsidiaries: Recommendation 18
  • Higher-Risk Countries: Recommendation 19
  • Regulation and Supervision of Financial Institutions: Recommendation 26
  • Powers of Supervisors: Recommendation 27
  • Regulation and Supervision of Designated Non-Financial Businesses and Professions (DNFBPs): Recommendation 28
  • Statistics: Recommendation 33
  • Sanctions: Recommendation 35

Recommendations with Improved Ratings

The FATF has also re-rated the following recommendations:

  • Recommendation 5 to Compliant
  • Recommendation 8 to Largely compliant
  • Maintained the ratings of Partially Compliant for Recommendation 7
  • Maintained the rating of Compliant for Recommendation 21

Continued Efforts Needed

While progress was made on Recommendations 6, 13, 14, 23, 34, and 40, it was insufficient to justify a re-rating. Belgium’s efforts demonstrate its commitment to strengthening its AML/CFT framework and meeting international standards set by the FATF.

Conclusion

Belgium’s progress is expected to contribute to a safer financial system and reduce the risk of money laundering and terrorist financing. The country’s continued efforts in implementing robust AML/CFT measures will help ensure the integrity of its financial sector and promote a stable global economy.