Financial Crime World

Belgium Strengthens Anti-Money Laundering Measures in Response to Global Risks

Combating Money Laundering and Terrorist Financing in Belgium

As part of its efforts to combat money laundering and terrorist financing, Belgium is taking a risk-based approach in implementing anti-money laundering (AML) and counter-terrorism financing (CFT) measures. The country’s AML/CFT framework is guided by the Law of 18 September 2017, which sets out the requirements for obliged entities such as banks, financial institutions, and other organizations.

Risk Assessment and High-Risk Jurisdictions

Belgium’s risk assessment identifies high-risk relationships with natural persons or legal entities established in third countries that show a high level of geographical risk. These include countries listed by the Financial Action Task Force (FATF) as having strategic deficiencies in their AML/CFT regulations.

  • The FATF maintains two lists:
    • Blacklist: Countries considered to be high-risk jurisdictions subject to a call for action.
    • Greylist: Jurisdictions under increased monitoring, comprising 24 countries that have committed to addressing strategic AML/CFT deficiencies.
  • The current blacklist includes Myanmar, North Korea, and Iran.

European Union’s List of High-Risk Third Countries

Article 9 of Directive 2015/849 empowers the European Commission to identify third countries with strategic deficiencies in their AML/CFT regulations, which pose a serious threat to the EU financial system. The current EU list includes 30 countries.

Countermeasures Against Inadequate Regulations

In contrast to other EU member states, Belgium has not established its own list of high-risk jurisdictions. Article 54 of the AML Law provides for the possibility to take countermeasures against countries with inadequate regulations or traditions that hinder the fight against money laundering and terrorist financing.

Enhanced Due Diligence Measures

In response to global risks, Belgium’s obliged entities are required to increase vigilance in their business relationships and transactions with natural persons, legal entities, and financial institutions established in high-risk jurisdictions. This includes:

  • Applying enhanced due diligence measures.
  • Conducting regular risk assessments.
  • Reporting suspicious transactions to the relevant authorities.

Conclusion

By strengthening its AML/CFT framework, Belgium aims to protect its financial system from money laundering and terrorist financing risks while also contributing to the global efforts to combat these threats.