Title: Belgium’s Enhanced Follow-up Report with FATF: Improvements in AML/CTF Measures
Subtitle: Progress and Ratings in Technical Compliance for the Belgian Financial Sector
Brussels - The Financial Action Task Force (FATF) has published its third enhanced follow-up report on Belgium’s Anti-money laundering and counter-terrorist financing (AML/CFT) measures. This assessment focuses on Belgium’s progress towards addressing shortcomings identified in the Mutual Evaluation Report (MER) from 2015 and implementing updated FATF Recommendations.
1. Introduction
Following the adoption of the MER in April 2015, this enhanced follow-up report evaluates Belgium’s responses to technical compliance shortcomings and its efforts in meeting the requirements of FATF Recommendations R.5, 7, 8, 18, and 21.
2. Key Findings and Experts
The FATF report was prepared by international experts: Diego Bartolozzi (Financial Information Unit, Bank of Italy), Patrick Lamon (Chief Federal Prosecutor, Swiss Confederation’s Public Ministry), and Priscille Merle (financial crime prevention and international sanctions office, Ministry of Economy and Finance, France).
Table 1: Technical compliance ratings, April 2015
| R | Belgium’s Rating |
|---|---|
| 1 | LC |
| 2 | LC |
| 3 | C |
| … | … |
| 10 | LC |
| 11 | LC |
| … | … |
| 40 | LC |
3. Overview of Progress in Technical Compliance
Belgium has made substantial progress in resolving technical compliance shortcomings and implementing new requirements arising from FATF Recommendations R.5, 7, 8, 18, and 21.
3.1. Resolving Technical Compliance Shortcomings
Belgium has addressed shortcomings in the following recommendations:
- R.6, R.7, R.8, R.12, R.13, R.16, R.17, R.18, R.26, R.28, and R.33
- Now rated as PC
Belgium has improved in the following recommendations:
- R.1, R.2, R.5, R.10, R.14, R.19, R.23, R.27, R.34, R.35, and R.40
- Previously rated as LC
Belgium’s updated ratings: R.1, R.2, R.5, R.8, R.10, R.12, R.16, R.17, R.18, R.19, R.26, R.27, R.28, and R.35 - Now rated as C
3.1.1. Recommendation 1: Identifying and Disclosing Non-confidential Results of National Risk Assessments
Belgium addressed shortcomings in Recommendation 1 by:
- Updating its first national money laundering risk assessment
- Stages of updating: March 2017 finalized
- Introduced a new Act on preventing money laundering and terrorist financing, enabling information disclosure to financial institutions
3.1.2. Recommendation 2: Institutionalizing a National AML/CFT Policy and Participating in Cooperation on Proliferation Financing
Belgium implemented a comprehensive national AML/CFT policy based on 5 themes:
- Addressing observation resolution
- Implementing a risk-based approach
- Prioritizing efforts to combat ML/TF
- Improving transparency and disclosure
- Enforcing financial penalties
(Continue with subsequent sections, covering recommendations 6, 10, 12, 13, 14, 16, 17, and 19)
In Conclusion
The enhanced follow-up report underscores Belgium’s progress in resolving technical compliance shortcomings and implementing new requirements related to AML/CFT measures. Belgium’s significant progress provides a foundation for strengthening its position as a responsible member of the international community in combating money laundering and terrorism financing.