Money Laundering Crackdown in Belgium: A Look at the Anti-money Laundering Act and its Applications to Games of Chance
Belgium, like many other countries, has been grappling with the issue of money laundering. This illicit practice involves making illegally obtained funds legal. To combat this issue, the Belgian government introduced the Anti-money laundering Act on September 18, 2017. This legislation adheres to various international standards, such as the 40 International Financial Action Task Force (FATF) standards and the EU Directive 2015/849.
Games of Chance: A Particularly Susceptible Sector
One sector that is particularly susceptible to money laundering is the gaming industry. In Belgium, operators of games of chance are subject to specific obligations under the Anti-money laundering Act.
Organizational and internal controls
To prevent money laundering and terrorist financing, operators of games of chance are required to:
- Establish comprehensive policies, procedures, and internal control measures
- Appoint a senior manager to approve these measures
- Designate a responsible person and one or more compliance officers to monitor implementation
- Provide staff training on relevant legislation, policies, and procedures
Risk assessment
Operators are expected to assess their risk of exposure to money laundering and terrorist financing, considering factors such as:
- Customer characteristics
- Products and services offered
- Transaction types
- Geographic locations
Identification and vigilance
The Anti-money laundering Act mandates operators to:
- Identify and verify the identity of players before entering into a business relationship or conducting transactions
- Examine player characteristics and transaction purpose and nature
- Comply with financial embargoes and freezing of funds for certain individuals
Compliance and reporting
In case of atypical transactions or an inability to fulfill vigilance measures, operators must:
- Conduct thorough analyses
- Draft written reports
- Report suspicions of money laundering or terrorist financing to the Financial Intelligence Processing Unit (CTIF-CFI) in Belgium
Data and document storage
Operators are required to store essential documents, including:
- Identification details
- Supporting documents
- Transaction records
for a period of 10 years. Cash transactions are limited to €3,000, with no more than this amount paid out to a player in cash at one time.
Regulatory Oversight
The Gaming Commission (GC) is responsible for monitoring compliance with these statutory provisions. Violations can result in administrative fines ranging from €250 to €1,250,000, as well as criminal prosecution.
Reporting Potential Violations Anonymously
Confidential whistleblowing channels, such as the federal Ombudsman and the Federal Institute for the Protection and Promotion of Human Rights, are available for reporting potential violations of Belgium’s money laundering regulations anonymously.