Financial Crime World

Title: Belgium’s Robust Response to Financial Crime: AML Regulations and Regulators

Belgium, renowned for its financial influence in Europe, is currently grappling with a rising threat of financial crimes, including money laundering and terrorism financing. In 2021, the Belgian Financial Intelligence Unit (FIU) reported a 50% increase in suspicious transactions, reaching a record-breaking 46,000 transactions. Confronted with this surging issue, Belgium has strengthened its regulatory framework and established key regulators to safeguard its economy and contribute to global anti-money laundering (AML) and counter-financing of terrorism (CFT) initiatives.

For Organizations Operating in Belgium: Adherence to AML Regulations is Crucial

This article aims to shed light on Belgium’s primary financial regulators, key AML regulations, and compliance measures for organizations planning to venture into or expand in the country.

primary financial regulators in Belgium

1. The Financial Services and Markets Authority (FSMA)

Established in 2011, the Financial Services and Markets Authority (FSMA) is Belgium’s primary financial regulator. Its responsibilities include:

  • Consolidated supervision of the financial system and markets
  • Supervision of financial products and services
  • Enforcement of financial conduct rules and AML/CFT regulations
  • Surveillance of markets and distributed financial information
  • Financial education

Collaborating with the National Bank of Belgium (NBB) and the Federal Public Service Economy, the FSMA enforces AML/CFT compliance procedures by conducting onsite inspections and requesting documentation. Failure to comply may result in warnings, business prohibitions, or significant financial penalties.

2. The Financial Intelligence Processing Unit (CTIF)

The Financial Intelligence Processing Unit (CTIF), as Belgium’s financial intelligence unit (FIU), is responsible for:

  • Collecting and processing AML/CFT data, including suspicious transaction reports
  • Providing intelligence for subsequent law enforcement investigations
  • Collaborating with counterpart FIUs worldwide to aid in investigations and prosecutions

Key AML Regulations in Belgium

Belgium’s primary AML/CFT legislation is the Law of 18 September 2017 on the Prevention of Money Laundering and Terrorist Financing, commonly known as the “AML Law.” This law, which transposes the details of EU’s Anti-Money Laundering Directives, imposes risk-based requirements on various business sectors operating within Belgium. Non-compliance may result in fines, reaching up to €1,250,000 for non-financial companies and €5,000 or 10% of annual turnover for financial companies.

Key AML Compliance Measures for Firms in Belgium

To maintain AML/CFT compliance in Belgium, firms must:

  1. Conduct accurate risk assessments of individual customers
  2. Implement customer due diligence measures
  3. Verify ultimate beneficial ownership and build accurate risk profiles
  4. Screen against adverse media, politically exposed person lists, and global sanctions lists
  5. Conduct ongoing customer screening for new information and sanction list updates
  6. Implement enhanced due diligence (EDD) for customers subject to international sanctions

Belgian AML Initiatives

Belgium is set to implement the EU’s Markets in Crypto Assets (MiCA) regulation in 2024. This regulation deals with the AML/CFT treatment of crypto assets and introduces specific requirements for the use of stablecoins and an EU-wide crypto asset service provider register.

Recently, Belgium introduced an amendment to the AML Law. This amendment brought crypto exchange providers under its scope, and new regulatory measures were introduced, including a prohibition on non-European Economic Area (EEA) crypto exchange providers in Belgium and an FSMA registry for crypto exchange service providers.

AML Compliance Solutions for Belgian Businesses

Firms in Belgium must conduct thorough international data searches to discover customer involvement in AML/CFT risk factors set out by domestic legislation. Rapid, comprehensive, and accurate screening are crucial for effective customer screening. Ripjar’s Labyrinth Screening platform can assist Belgian businesses in complying with AML/CFT regulations and international data searches by delivering actionable intelligence from thousands of global data sources, including real-time adverse media, sanctions list, and watchlist updates. Contact us to learn more about how Ripjar can support your AML compliance in Belgium.