Title: Belgian Financial Regulators Crack Down on Money Laundering and Terrorist Financing: A Closer Look at AML/CFT Regulations in Belgium

Money Laundering Prohibition in Belgium

Strictly prohibited under the Law of January 11, 1993 (Article 505 of the Penal Code)
Punishable by up to five years in prison
EU’s Council Directive 2001/97/EC incorporated: expanded scope to terrorist financing
January 2010: aligned with EU’s third anti-money laundering directive

Belgian Banking and Finance Commission (CBFA): banks, exchange houses, stock brokerages, insurance firms
Belgian Gaming Commission: casinos
Unregulated professions: come under CTIF-CFI
Financial Services and Markets Authority (FSMA): apex regulatory body, ensures AML/CFT compliance and financial system stability

Replaced the Banking, Finance, and Insurance Commission (CBFA) in 2011
Operates as an autonomous public organization reporting to the Belgian parliament and governed by Royal Decree
Key objectives: six areas—monitoring financial markets, ensuring regulations and norms, supervising financial products, overseeing financial service providers, monitoring supplemental pension plans, and promoting financial education

EU Member: integrated AMLD into national legislation
Fifth Anti-Money Laundering Directive (5AMLD): September 2017, expanded regulation to cover: cryptocurrency service providers, prepaid cards, high-value commodities transactions, and additional beneficial ownership measures
Sixth Anti-Money Laundering Directive (6AMLD): came into force in December 2020, compliance deadline of June 3, 2021
Adherence to FSMA’s conduct guidelines
Penalties for noncompliance: five years’ imprisonment and fines of up to €800,000 for individuals and up to €5 million for businesses, investigational obstruction: fines of up to €5 million and a year in prison

Belgium’s comprehensive AML/CFT regulatory framework helps maintain a secure and robust financial sector while combatting financial crimes.