Belgium’s Crackdown on Financial Crime: Understanding the Definitions

In the ongoing war against financial crime, Belgium has reinforced its legislative measures with the Anti-Money Laundering Law and the Anti-Money Laundering Regulation of the National Bank of Belgium (NBB). This article provides a simplified breakdown of the crucial definitions contained in these regulations.

Money laundering: Making illegally-gained proceeds (criminal property) appear legal.
Terrorist financing: Providing financial support to individuals or organizations involved in, or planning, terrorist acts.

AML/CFT Entities

(A)ML/(C)FT entities: These entities are subject to anti-money laundering and anti-terrorist financing regulations.

AMLCOs and Financial Organizations

AMLCOs (Anti-Money Laundering and Compliance Officers): Professionals responsible for ensuring their institutions comply with anti-money laundering and anti-terrorist financing regulations.
Obliged entities: The various financial institutions subjected to these regulations.

Essential Definitions

Beneficial owner: The ultimate owner or controller of a company or legal entity, or the individual who ultimately profits from their activities.
Binding provisions: The contractual terms that cannot be changed without mutual agreement between the parties.
Correspondent relationship: A relationship between two financial institutions where one institution carries out transactions on behalf of the other.
Criminal activity: An act that is punishable by law.

Additional Concepts

Atypical transactions: Transactions that deviate significantly from the normal transaction patterns of a customer.
Financial intelligence unit (FIU): A national agency responsible for receiving, analyzing, and forwarding of reported financial information related to money laundering and terrorist financing.
International organization: An organization established under international law or with a presence in more than one country.

Financial Institutions

Shell banks: Banks that provide nominee or bearer services, creating multiple bank accounts without the need for physical presence.
Senior management: Individuals responsible for overseeing the strategic direction and overall management of organizations.
Trusts: Legal arrangements designed to protect, manage, and distribute assets on behalf of the settlor or beneficiary.

For a comprehensive understanding of these definitions and their role in Belgian anti-money laundering and anti-terrorist financing regulations, refer to the preparatory works of Belgium’s Anti-Money Laundering Law (Law of 18 September 2017 and amending Laws) available on the relevant websites. Stay informed and protect the financial sector from financial crime.

Note: This English text is an unofficial translation, intended to serve as a useful resource for those working with financial crime prevention in Belgium.