Belgium Adopts Risk-Based Approach to Combat Money Laundering and Terrorist Financing

In its latest report, Belgium has made significant progress in implementing the Financial Action Task Force (FATF) Recommendations, a set of standards aimed at combating money laundering and terrorist financing. The country’s compliance with these standards is evaluated based on a risk-based approach, which assesses the extent to which it has implemented the technical requirements.

Key Areas of Progress

• Risk Assessment: Belgium has effectively assessed risks and applied a risk-based approach to anti-money laundering (AML) measures, earning a “compliant” rating in this regard.
• National Cooperation: The country has demonstrated strong national cooperation and coordination among its law enforcement agencies, financial institutions, and other stakeholders.
• Legal Framework: Belgium has established a robust money laundering offense and confiscation measures to combat the proceeds of crime. Additionally, it has implemented targeted financial sanctions related to terrorism and terrorist financing, as well as those aimed at proliferating weapons of mass destruction.

Challenges Remaining

• Customer Due Diligence: While progress has been made in implementing customer due diligence requirements, Belgium still needs to fully address the risks associated with non-profit organizations and their potential involvement in money laundering and terrorist financing.

Conclusion

Belgium’s risk-based approach to AML has yielded positive results, demonstrating its commitment to combating financial crime and protecting the integrity of its financial system. The country continues to work towards strengthening its AML regime and ensuring that it remains compliant with international standards. By addressing the remaining challenges, Belgium can further improve its efforts to combat money laundering and terrorist financing.