Belgian Central Bank Fines BNP Paribas €15M for “Egregious” AML Failings

The Belgian National Bank (NBB) has imposed a fine of €15 million on BNP Paribas Fortis, Belgium’s largest bank, for insufficient measures to combat money laundering between 2014 and 2019.

Serious Shortcomings in BNP Paribas Fortis’ AML Policies

The NBB identified several issues with the bank’s internal control policies and verification processes:

1. Inadequate due diligence regarding clients and transactions
2. Weaknesses in the bank’s risk assessment framework

The bank allegedly failed to address potential money laundering risks adequately during this period.

NBB’s Zero-Tolerance Approach and Expectations for Compliance

The Belgian central bank expects financial institutions to prioritize AML controls and invest in effective compliance frameworks:

“The fine aims to encourage financial institutions to prioritize AML controls and invest in effective compliance frameworks to safeguard the Belgian financial sector.” - NBB

Response from BNP Paribas Fortis

BNP Paribas Fortis is cooperating with the regulatory body and plans to take appropriate action to rectify the identified deficiencies:

“In response to the fine, BNP Paribas Fortis released a statement expressing its commitment to reinforcing its AML policies and collaboration with the NBB to ensure full compliance moving forward.”

This fine follows a series of similar actions against international financial institutions for AML failings:

• Deutsche Bank AG
• ING Group NV
• HSBC Holdings Plc

The fines serve as reminders for financial institutions worldwide to invest in robust AML frameworks to minimize their risks and maintain the integrity of the global financial system.