Financial Crime World

Belgium Takes Steps to Combat Terrorist Financing, But More Needs to be Done

A recent evaluation by the Financial Action Task Force (FATF) has found that Belgium has made progress in implementing measures to combat terrorist financing. However, the country still faces challenges and must continue to strengthen its efforts.

Areas of Compliance

The FATF report highlights several areas where Belgium has been largely compliant with international standards:

  • Assessing risk and applying a risk-based approach to combating terrorist financing
  • Having laws and regulations in place to prevent money laundering and terrorist financing

Progress in Implementing Targeted Sanctions and Regulation

Belgium has made significant progress in implementing targeted financial sanctions related to terrorism and terrorist financing, as well as measures to regulate and supervise financial institutions and designated non-financial businesses and professions (DNFBPs).

Areas for Improvement

However, the report also identifies several areas where Belgium falls short:

  • Failing to confiscate and seize assets linked to terrorist financing
  • Lacking sufficient transparency and beneficial ownership of legal persons

Deficiencies in Financial Intelligence Unit and Law Enforcement

The FATF report notes that Belgium’s financial intelligence unit does not have adequate resources or authority to effectively carry out its functions, and that law enforcement and investigative authorities do not have sufficient powers to conduct investigations and prosecutions related to terrorist financing.

Reforms and Recommendations

To address these deficiencies, the Belgian government has committed to implementing a number of reforms:

  • Strengthening laws and regulations related to terrorist financing
  • Increasing transparency and beneficial ownership
  • Improving resources and authority of financial intelligence unit

The FATF report also recommends that Belgium improve its international cooperation in combating terrorist financing, including through mutual legal assistance and extradition.

Conclusion

Overall, while Belgium has made progress in combating terrorist financing, it still faces significant challenges. The country must continue to strengthen its efforts and address the deficiencies identified by the FATF report if it is to effectively combat this threat.