International Cooperation in AML/CFT in Belgium: Key Provisions and Recommendations

Introduction

Belgium’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) framework emphasizes international cooperation as a crucial aspect of combating financial crimes. This article outlines key provisions and recommendations for national and international cooperation in AML/CFT in Belgium.

Provisions Common to National and International Cooperation

Defining Essential Concepts

Article 120/2 of the Anti-Money Laundering Law defines essential concepts used in Title 5, including supervisory authorities, financial supervisory authorities, and supervisors. These definitions provide a solid foundation for cooperation between national and international bodies.

EU Guidelines on Cooperation and Coordination

The EBA Guidelines on cooperation and coordination of supervisory activities (2016) outline principles for cooperation between EU member states’ supervisory authorities. These guidelines promote effective collaboration and information-sharing among European countries.

National Cooperation

Collaboration Between National Authorities

The National Bank of Belgium (NBB) cooperates with the Financial Services and Markets Authority (FSMA), the Treasury, and the Central Office for Combating Money Laundering and Terrorist Financing (CTIF) to ensure efficient implementation of AML/CFT obligations. This cooperation includes:

Information exchange on suspicious transactions
Joint inspections and monitoring of high-risk entities
Sharing best practices and guidelines

The NBB has signed Memoranda of Understanding (MoUs) with the FSMA and CTIF to formalize their cooperation.

International Cooperation

Belgium’s Participation in International Initiatives

Belgium participates in international initiatives, such as:

The Egmont Group: A network of European financial supervisors’ authorities collaborating on AML/CFT issues
The Financial Action Task Force (FATF): An inter-governmental body promoting global efforts against ML/FT
The European Union’s Anti-Money Laundering and Counter-Terrorist Financing (AMLTTF) coordination group: Supporting cooperation between EU member states’ authorities

Recommendations for Effective International Cooperation

Implement robust information-sharing systems to facilitate international cooperation.

Establish Clear Guidelines and Protocols

Establish clear guidelines and protocols for information exchange, including standards for data format and content.

Foster Trust through Secure Communication Channels

Foster trust through secure communication channels and regular meetings between cooperating authorities.

Develop Joint Strategies for High-Risk Entities

Develop joint strategies for addressing high-risk entities and ML/FT risks.

Encourage knowledge-sharing and capacity-building among cooperating countries.

By implementing these recommendations and key provisions, Belgium can strengthen its international cooperation in AML/CFT, ultimately enhancing the global fight against financial crimes.