Belgium’s Anti-Money Laundering Policies Under Scrutiny

Mixed Ratings for Belgium’s AML Implementation

In its latest report, Belgium received mixed ratings on its implementation of anti-money laundering (AML) policies. The country scored high marks in several areas, but fell short in others.

Compliant with 27 Recommendations

According to the report, Belgium was found to be compliant with 27 out of 40 recommendations made by the Financial Action Task Force (FATF). This includes:

• Assessments of risk and application of a risk-based approach (R.1)
• National cooperation and coordination (R.2)
• Confiscation and provisional measures (R.4)

Partial Compliance with Several Areas

However, Belgium was found to be partially compliant with several areas, including:

• Targeted financial sanctions related to terrorism and terrorist financing (R.6)
• Correspondent banking (R.13)
• New technologies (R.15), wire transfers (R.16), and DNFBPs: other measures (R.23)

Non-Compliance with Several Areas

Meanwhile, Belgium was found to be non-compliant with several areas, including:

• Transparency and beneficial ownership of legal persons (R.24)
• DNFBPs: customer due diligence (R.22)
• Regulation and supervision of financial institutions (R.26)
• Powers of supervisors (R.27)
• Responsibilities of law enforcement and investigative authorities (R.30)

Room for Improvement

The report noted that Belgium has made significant progress in strengthening its AML policies, but there is still room for improvement. The country’s failure to fully implement several recommendations poses risks to the global financial system.

Urgent Action Required

As a result, international regulators are urging Belgium to take immediate action to address these shortcomings and bring its AML policies up to par with international standards.