White-Collar Crime on the Rise in Belgium: Whistleblowing, Fraud, and Environmental Concerns Top the Agenda

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Belgium has seen a significant increase in white-collar crime investigations and prosecutions across various sectors, including construction, transportation, and finance. The introduction of the Belgian Whistleblowing Act in February 2023 has heightened the focus on workplace misconduct and psychosocial hazards.

Investigations and Prosecutions

The European Public Prosecutor’s Office (EPPO) has launched new prosecutions targeting:

Evasion of customs duties
Fraud affecting EU financial interests
Specific types of VAT-fraud

In EPPO cases, prosecution and court litigation continue to be the preferred option by authorities, with out-of-court settlements being the exception.

Sanctions violations have become a major concern for companies operating in Belgium, as the EU has successfully concluded negotiations for a new directive harmonizing criminal law standards and penalties across the union. Belgian authorities are also intensifying their scrutiny of:

Social fraud
Social dumping
Modern slavery
Large-scale investigations and prosecutions encouraged by social law chain liability schemes

These kinds of cases frequently involve allegations of serious criminal offenses, such as participating in a criminal organization or aiding or abetting human trafficking.

Corporate Criminal Liability and Internal Investigations

Law reforms aimed at corporate criminal liability are also underway, introducing radical changes to Belgian substantive criminal law rules and new criminal offenses, including “ecocide”. Amendments to the Belgian code of criminal procedure will fundamentally change the rules on jurisdiction and statutes of limitations.

Internal investigations have become a key consideration for companies in Belgium, with legal privilege, clear investigation processes, and senior management oversight being crucial. The introduction of whistleblowing hotlines has accelerated the need for businesses to carefully manage their intake and triage of whistleblower reports and ensure due process during internal investigations.

High-Risk Sectors and Cross-Border Investigations

The transport and construction sectors are being targeted as high-risk sectors in the fight against social fraud and illegal employment, while financial intermediaries remain under close scrutiny by Belgian prosecutors investigating and prosecuting fraud matters. Cross-border coordinated investigation or enforcement activity is on the rise, with the EPPO targeting cross-border criminal conduct in collaboration with other EU institutions.

Environmental Law Enforcement

Environmental law enforcement, including against greenwashing, is expected to become a major focus area in 2024, with the EU recently concluding an agreement on a new directive on protecting the environment through criminal law. In-house legal teams must closely monitor these developments across various sectors.

Predictions for 2024

Predictions for 2024 include:

Continued scrutiny of social fraud, social dumping, and modern slavery
Increased enforcement of crimes harming EU interests
The use of out-of-court settlements may become less prevalent, as prosecutors become more reluctant to initiate settlement negotiations in cases involving alleged corruption and certain regulatory violations.

Conclusion

As companies operating in Belgium navigate these complex legal landscapes, it is essential to stay informed about the latest developments and adapt strategies to mitigate risks and ensure compliance with evolving regulations.