Belgium Tightens AML/CFT Regulations Amid Global Concerns: Country-by-Country Breakdown Reveals High-Risk Jurisdictions
Belgium has strengthened its anti-money laundering and combating the financing of terrorism (AML/CFT) regulations, adopting a risk-based approach to adapt vigilance measures for obliged entities. This move comes as the country joins global efforts to combat financial crimes.
Understanding Belgium’s AML Law
According to Article 7 of the Law of 18 September 2017, Belgium’s AML Law, obliged entities must increase vigilance when dealing with natural persons or legal entities established in third countries identified as high-risk jurisdictions. These countries are listed by the Financial Action Task Force (FATF) and the European Commission as having strategic deficiencies in their national AML/CFT regulations.
High-Risk Jurisdictions
The FATF list of “high-risk jurisdictions subject to a call for action” currently comprises:
- Myanmar
- North Korea
- Iran
These countries are considered to pose significant threats to the international financial system. Obliged entities are urged to apply effective countermeasures to mitigate these risks.
Jurisdictions Under Increased Monitoring
The FATF has also identified 27 countries that have committed to implementing action plans to address strategic AML/CFT deficiencies. This list includes:
- Bulgaria
- Burkina Faso
- 24 other countries
European Commission’s List of High-Risk Third Countries
The European Commission’s list of high-risk third countries for the EU financial system is also an important consideration for Belgium. The list, updated regularly, currently includes:
- Afghanistan
- Barbados
- 27 other countries that pose a serious threat to the EU financial system.
Belgium’s Approach
Notably, Belgium has not yet established its own list of high-risk jurisdictions, despite having the authority to do so under Article 54 of the AML Law. However, the country remains committed to implementing the FATF’s recommendations and guidelines to ensure a robust AML/CFT framework.
Conclusion
Belgium’s risk-based approach is seen as a significant step forward in protecting its financial system from money laundering and terrorist financing. The country’s obliged entities are now better equipped to identify and mitigate risks associated with high-risk jurisdictions, ensuring a safer and more stable financial environment for all stakeholders. As global efforts to combat financial crimes continue to evolve, Belgium’s commitment to implementing effective AML/CFT regulations remains crucial in maintaining a robust and secure financial system.