Title: Belgium Cracks Down on Financial Crimes: AML Regulations and Regulators in the European Powerhouse

Amidst Belgium’s rich cultural heritage and political influence in Europe, financial crimes pose a growing threat to its economic system and global security. Money laundering and terrorist financing activities have been on the rise, with the Belgian Financial Intelligence Unit (FIU) recording over 46,000 suspicious transactions in 2021, a 50% increase from the previous year ¹. To combat this trend, Belgium has established a robust anti-money laundering (AML)/counter-financing of terrorism (CFT) regulatory framework and appointed key regulators.

For businesses operating or setting up shop in Belgium, understanding the country’s AML regulations and complying with them is crucial. In this article, we delve into the critical regulatory bodies, key regulations, and steps to ensure your organization stays protected from financial risks.

Belgium AML Regulators

Belgium’s financial regulatory landscape includes the following key entities:

1. The Financial Services and Markets Authority (FSMA)

• Established in 2011
• Belgian primary financial regulator
• Oversees the supervision of financial products, services, market surveillance, and financial education
• Ensures financial institutions comply with AML/CFT regulations
• Collaborates with the National Bank of Belgium (NBB) and the Federal Public Service Economy

2. The Financial Intelligence Processing Unit (CTIF)

• Belgium’s Financial Intelligence Unit
• Collects and processes AML/CFT data
• Provides actionable intelligence for law enforcement agencies
• Collaborates with counterpart units worldwide

Key AML Regulations in Belgium

Belgium’s AML efforts are governed primarily by the Law of 18 September 2017 on the Prevention of Money Laundering and Terrorist Financing (or the “AML Law”). This law, which transposes the EU’s Anti-Money Laundering Directives, enforces risk-based AML/CFT requirements for firms operating within Belgian jurisdiction.

Taking the Necessary Steps

Under the risk-based AML/CFT requirements, firms in Belgium must conduct a risk assessment of their customers to implement proportionate measures. Key controls for AML/CFT compliance include:

1. Customer due diligence (CDD)
2. Ultimate beneficial ownership (UBO) verification
3. Customer screening against watchlists and sanctions lists
4. Adverse media screening
5. Sanctions screening

Belgium’s Focus on Crypto Regulation

In preparation for the EU’s Markets in Crypto Assets (MiCA) regulation set to be introduced in 2024, Belgium has made significant strides in crypto regulation. A recent amendment expanded the AML Law to include crypto service providers ². This change introduced new criminal offenses, sanctions, and requirements for crypto exchange service providers.

Effective AML Compliance Solutions

With the increased emphasis on global AML compliance, firms in Belgium and beyond need access to comprehensive, real-time, multilingual data sources to perform thorough customer screening, ensure regulatory compliance, and minimize false positives. Ripjar’s advanced Labyrinth Screening platform offers rapid, accurate, and customizable AML compliance solutions across Belgium, Europe, and the globe. If you are interested in discussing your AML compliance needs with Ripjar, please reach out to us.