Financial Crime World

Belgium Lags Behind in Anti-Money Laundering Efforts, Report Reveals

A recent evaluation by the Financial Action Task Force (FATF) has highlighted significant shortcomings in Belgium’s anti-money laundering (AML) policies. Despite making some progress, the country still falls short of international standards in several key areas.

FATF Evaluation Findings

Partially Compliant Areas

Belgium received a “partially compliant” rating for 10 out of 40 key FATF Recommendations. These areas include:

  • Targeted Financial Sanctions related to Terrorism and Terrorist Financing: Belgium has taken some steps, but still needs improvement.
  • Correspondent Banking: The country’s policies are not up to par in this area.
  • New Technologies: While Belgium has made some progress, more work is needed to stay ahead of emerging threats.

Largely Compliant and Non-Compliant Areas

In contrast, the report highlighted several areas where Belgium is:

  • Largely Compliant: Regulation and supervision of non-profit organizations (NPOs) are subject to robust oversight.
  • Non-Compliant: Transparency and beneficial ownership of legal arrangements require significant improvement.

Progress Made in Confiscation and Provisional Measures

Belgium has demonstrated a strong commitment to freezing and recovering illicit assets related to money laundering offenses. However, this does not offset the shortcomings identified in other areas.

Recommendations for Improvement

The FATF evaluation concludes that Belgium needs to strengthen its AML policies and procedures to better prevent and detect money laundering and terrorist financing activities. This includes:

  • Implementing effective customer due diligence measures
  • Improving record-keeping practices
  • Enhancing transparency around beneficial ownership

Conclusion

The FATF evaluation serves as a reminder that anti-money laundering efforts require ongoing commitment and vigilance from governments, regulators, and financial institutions. Belgium must seize this opportunity to strengthen its defenses against money laundering and terrorist financing, protecting not only its own financial system but also the global economy.