Financial Crime World

Belgium Struggles to Implement Financial Inclusion and Crime Prevention Measures

A recent report by the Financial Action Task Force (FATF) has highlighted Belgium’s inconsistent efforts in implementing measures to prevent financial crime and promote financial inclusion. The country received mixed ratings across various technical requirements of the FATF Recommendations.

Belgium’s Compliance with FATF Recommendations

While Belgium demonstrated compliance in several areas, including:

  • Assessing risk and applying a risk-based approach: Belgium has established a robust framework for assessing risks and implementing a risk-based approach to prevent financial crime.
  • National cooperation and coordination: The country has made significant efforts to enhance national cooperation and coordination among its various authorities and institutions.
  • Money laundering offence, confiscation and provisional measures: Belgium has implemented effective measures to combat money laundering, including the establishment of a comprehensive framework for confiscating assets related to financial crime.

However, the country fell short in several key areas, including:

Areas of Concern

  • Targeted financial sanctions related to terrorism and terrorist financing: Belgium’s efforts to implement targeted financial sanctions were deemed partially compliant by the FATF.
  • Correspondent banking: The country’s regulation and supervision of correspondent banking were also considered partially compliant.

Recommendations for Improvement

The FATF report suggests that Belgium needs to improve its implementation of measures to prevent financial crime and promote financial inclusion. To address these areas of concern, the country should focus on:

  1. Strengthening regulation and supervision of DNFBPs: Belgium should enhance its regulation and supervision of designated non-financial businesses and professions (DNFBPs) to ensure that they are implementing effective measures to prevent financial crime.
  2. Improving customer due diligence and record keeping practices: The country should improve its customer due diligence and record keeping practices to ensure that financial institutions are meeting their obligations under the FATF Recommendations.
  3. Enhancing international cooperation and mutual legal assistance arrangements: Belgium should strengthen its international cooperation and mutual legal assistance arrangements to facilitate the exchange of information and coordination with other countries.

By addressing these areas of concern, Belgium can better meet the FATF’s Recommendations and ensure that its financial system is more resilient to money laundering, terrorist financing, and other financial crimes. The country’s efforts in this regard will also help to promote financial inclusion and stability, ultimately benefiting the economy and society as a whole.