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Belgium’s Customer Due Diligence Regulations: Understanding the Requirements
As part of its efforts to prevent money laundering and terrorist financing, Belgium has implemented robust customer due diligence (CDD) regulations. These rules apply to all obliged entities operating in the country, requiring them to verify the identities of their customers and continually monitor transactions.
Key CDD Measures for Obliged Entities in Belgium
To comply with AML/CFT regulations, obliged entities in Belgium must implement the following three types of customer due diligence:
Standard Customer Due Diligence (CDD)
Applies to all customers who pose a standard risk of money laundering.
Simplified Due Diligence (SDD)
Applies to low-risk customers, requiring less rigorous measures than CDD.
Enhanced Due Diligence (EDD)
Applied to high-risk customers, including:
- Politically exposed persons
- Companies operating in high-risk countries
When Do Obliged Entities Need to Apply CDD Measures?
In Belgium, obliged entities must apply customer due diligence measures in the following situations:
- When entering a business relationship with a new client
- For occasional transactions exceeding €10,000 or more
- When suspecting money laundering or terrorist financing
Required CDD Measures
To comply with AML/CFT regulations, obliged entities must implement the following customer due diligence measures:
Identifying Customers and Beneficial Owners
Obtain information about customers and verify their identities through official documents.
Determining the Nature and Purpose of the Business Relationship
Understand why customers want to enter a business relationship and how they intend to use your services/products.
Ongoing Monitoring of Business Relationships
Continually monitor transactions and ensure customer information is up-to-date.
Penneo KYC: Streamlining CDD Measures
Penneo KYC is a semi-automated digital solution that can help obliged entities in Belgium reduce the time and effort associated with conducting customer due diligence. With Penneo KYC, you can securely collect information and official documents from customers and beneficial owners, verify their identities, and automatically screen them against PEP and sanctions lists.
Book a demo of Penneo KYC today and learn how to eliminate the administrative burdens associated with client due diligence!