Financial Crime World

Belgium’s Crackdown on Financial Crime: An Overview of Laws, Regulations, and Guidance

The National Bank of Belgium (NBB) plays a crucial role in combating money laundering and the financing of terrorism in the Belgian financial sector. In this article, we delve into the various laws, regulations, and guidelines that form the backbone of Belgium’s financial crime prevention framework.

Introduction

Belgium has made significant strides in preventing financial crime. The National Bank of Belgium (NBB) is responsible for ensuring that financial institutions in the country remain compliant with anti-money laundering (AML) and countering financing of terrorism (CFT) regulations. In this section, we will provide an overview of the legal and regulatory framework at the national, European, and international levels.

National Level

1.1. Belgian Legislation

The primary legal weapons against financial crime in Belgium include:

  • The Anti-Money Laundering Law of 18 September 2017
  • Its accompanying regulation
  • Various preparatory works and amending laws, such as the Amending Law of 20 July 2020

1.2. Sectoral Risk Assessment

NBB conducts periodic sectoral risk assessments to identify money laundering and terrorist financing risks in Belgian financial institutions. The latest assessments were published in 2023 and 2020, respectively.

1.3. Circulars and Communications

The NBB issues circulars and communications to keep financial institutions informed of regulatory developments and expectations. Recent instances include:

  • Communication NBB_2023_08 regarding horizontal analysis of transactions carried out through tied agents of various payment institutions
  • Circular NBB_2022_04 focused on prudential expectations regarding AMLCO activity reports

1.4. Financial Sanctions

For dealing with financial sanctions, refer to the website of the Belgian Treasury.

1.5. Collaboration Platform

The Belgian AML platform is a public-private partnership designed to enhance the exchange of information and expertise between stakeholders in the financial sector.

European Level

2.1. European Legislation

Various European regulations, such as Delegated Regulation 2019/758, Regulation 2018/1672, and the Fourth and Fifth AML/CFT Directives, play a significant role in shaping Belgium’s financial crime prevention efforts.

International Level

3.1. FATF

The Financial Action Task Force (FATF) sets international standards on combating money laundering and terrorist financing. Belgium has adopted several FATF guidelines and undergoes periodic evaluations on its adherence to these recommendations.

Conclusion

Belgium has a robust legal and regulatory framework to prevent money laundering and the financing of terrorism. The NBB ensures that financial institutions remain compliant with these regulations and guidelines through periodic assessments, circulars, and communications. At the European and international levels, Belgium closely collaborates with other stakeholders to maintain a unified approach to combating financial crime.