Financial Crime World

Title: Belgium’s Financial Regulators and Anti-Money Laundering Measures: Protecting Prosperity from Criminal Activities

Money Laundering: A Criminal Offense in Belgium

  • Belgium prohibits money laundering under the Law of January 11, 1993.
  • Article 505 of the Penal Code classifies it as a criminal offense, punishable by a maximum of five years’ imprisonment.
  • Belgian legislation expanded in 2004 to combat not only drug trafficking but also the financing of terrorist acts or organizations.
  • An update in January 2010 implemented the EU’s third anti-money laundering directive.

Regulatory Watchdogs

  • The Belgian Banking and Finance Commission (CBFA) oversees financial institutions.
  • The Belgian Gaming Commission regulates casinos.
  • CTIF-CFI supervises professions not regulated by the CBFA or other agencies.
  • The Financial Services and Markets Authority (FSMA) is the apex regulatory body responsible for safeguarding Belgium’s financial system and ensuring AML/CFT compliance.

Role and Responsibilities of the FSMA

  • Established in 2011, the FSMA replaced the Banking Finance and Insurance Commission (CBFA).
  • An autonomous public organization reporting to the Belgian parliament and governed by Royal Decree.
  • Objectives include monitoring and supervising financial markets, ensuring compliance with regulations, and advancing financial education in Belgium.

Regulatory Guidelines

  • The FSMA issues conduct guidelines for financial institutions in Belgium.
  • These guidelines promote consistent treatment and maintain rigorous safety standards.
  • Belgium’s latest regulation on AML/CFT, 6AMLD, became effective on December 3, 2020.
  • It expands regulations to cover cryptocurrency service providers, prepaid cards, high-value commodities transactions, and beneficial ownership measures.

Penalties

  • Violating money laundering regulations may lead to financial and criminal consequences.
  • Individuals risk imprisonment for up to five years and fines of up to €800,000.
  • Businesses face an €1.6 million fine.
  • Infringements of AML/CFT regulations could result in fines of up to €5 million for individuals and 10% of the previous year’s earnings for businesses.
  • Those obstructing AML investigations face penalties of up to €5 million and a year of imprisonment.