Title: Belgian Financial System Undergoes FATF Assessment: Identified Risk Areas

Overview

Belgium’s compliance with the Financial Action Task Force (FATF) Recommendations was evaluated in the latest FATF report. The evaluation assessed the country’s adherence to the 40 Recommendations designed to combat money laundering and terrorist financing.

FATF Evaluation Findings

The following is a summary of the FATF’s findings regarding Belgium’s progress:

Compliant (C): 19 Recommendations
Largely Compliant (LC): 11 Recommendations
Partially Compliant (PC): 10 Recommendations
Not evaluated: 3 Recommendations (‘R.13’, ‘R.32’, and ‘R.35’)

Areas of Concern and Improvement

The following are brief descriptions of areas that require improvement, according to the FATF report:

Risk Assessment and Risk-based Approach (R.1)

The FATF identified room for improvement in the areas of risk assessment and the implementation of risk-based measures in some financial institutions.

National Cooperation and Coordination (R.2)

The progress made so far is noted, but further improvements are necessary to implement all measures required in this area properly.

Money Laundering Offenses (R.3) and Prohibition of Money Laundering and Terrorist Financing Offenses (R.5)

Legislative gaps and shortcomings in the law enforcement’s response may impact Belgium’s ability to effectively address money laundering offenses and prohibition of money laundering and terrorist financing offenses.

Belgium has laws to implement these sanctions, but further measures are needed to ensure full compliance with the FATF guidelines.

Internal Controls and Foreign Branches and Subsidiaries (R.18)

The FATF identified some deficiencies in the internal controls of financial institutions. Improvements are required in this area to ensure foreign branches and subsidiaries fully comply with Belgian AML/CFT regulations.

Reporting of Suspicious Transactions (R.20)

Financial institutions’ reporting of suspicious transactions requires improvements to meet the FATF’s expectations.

Next Steps

In the coming months, Belgium will collaborate with the FATF to address these recommendations and bring their regulatory framework up to the required standards. The next FATF evaluation will be conducted in the future to assess Belgium’s progress.