Financial Crime World

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Belgium Tightens its Belt on Financial Crime: What You Need to Know About AML Regulations

As a major financial hub, Belgium has long been a target for money launderers and terrorists. In 2021 alone, the country’s financial intelligence unit recorded a staggering 46,000 suspicious transactions - a 50% increase from the previous year. To combat this growing threat, the Belgian government has implemented a robust anti-money laundering (AML) framework, which has been hailed as a model for other European countries.

The Financial Services and Markets Authority (FSMA)

At the forefront of Belgium’s AML efforts is the FSMA, the country’s primary financial regulator. Established in 2011, the FSMA replaced its predecessor, the Banking Finance and Insurance Commission (CBFA), with the aim of consolidating supervision of Belgium’s financial system and protecting the transparency, fairness, and orderly operation of its markets.

Key Players in AML Efforts

  • The Financial Intelligence Processing Unit (CTIF) collects and processes AML/CFT data to provide actionable intelligence for law enforcement investigations.
  • The National Bank of Belgium and the Federal Public Service Economy work closely with the FSMA to ensure compliance with AML/CFT regulations.

AML Regulations in Belgium

Under Belgium’s main AML/CFT legislation - the Law of 18 September 2017 on the prevention of the use of the financial system for money laundering or terrorist financing - financial institutions are required to implement robust customer due diligence procedures, including:

  • Screening customers against international sanctions lists and watchlists
  • Conducting ongoing monitoring for adverse media and other risk factors

Regulating Crypto Assets

In recent years, Belgium has also focused heavily on regulating the crypto asset market. An amendment to the AML Law in 2022 brought crypto service providers under the scope of the legislation, introducing new requirements for stablecoins and establishing an EU-wide register of crypto asset service providers overseen by the European Banking Authority.

Compliance is Crucial

For financial institutions operating in Belgium, compliance with these regulations is crucial. Ripjar’s Labyrinth Screening platform has been designed to help firms achieve screening compliance in Belgium, the EU, and jurisdictions around the world. With cutting-edge machine learning technology and access to thousands of global data sources in real-time, Labyrinth Screening provides firms with the tools they need to stay ahead of evolving financial crime threats.

The Future of AML Regulations

As the fight against financial crime continues to evolve, one thing is clear: Belgium’s AML regulations are setting a new standard for financial institutions operating in Europe.