Financial Crime World

Belgium Cracks Down on Financial Crimes with Tough Penalties for Obstruction and Money Laundering Offenses

In a bid to combat financial crimes, Belgium’s National Bank (NBB) has imposed strict penalties on institutions that hinder inspections or violate the country’s Anti-Money Laundering (AML) Law. The move aims to curb illegal activities and protect the integrity of the financial system.

Penalties for Obstruction and AML Violations

Individuals found guilty of obstructing NBB inspections, refusing to disclose AML-required information, or intentionally providing incorrect or incomplete data can face:

  • Prison term: ranging from one month to one year
  • Fines: between €250,000 and €2.5 million under Article 36/20, §1, of the Law Establishing the Organic Statute of the NBB

Additionally, individuals found in violation of Article 67 of the AML Law, which restricts the use of cash, may be slapped with:

  • Criminal fines: between €250,000 and €225,000, capped at ten percent of the illegal payment or donation

Legal entities, including senior management members, governing bodies, or agents, can also face severe penalties for these offenses. Criminal fines can be extended to these individuals under the provisions of the Belgian Criminal Code, particularly:

  • Chapter VII
  • Article 85

NBB Intervention in Criminal Proceedings

The NBB is granted permission to intervene at any stage of the criminal proceedings against offending parties, without requiring demonstration of harm. This intervention must adhere to the applicable civil party rules.

Notification to Public Prosecutor

Article 90/1 of the AML Law mandates the NBB to inform the Belgian Public Prosecutor of these offenses if they occur in the exercise of the NBB’s supervisory powers relative to any particular financial institution.

Combating Financial Crimes

The tough penalties and measures aim to deter financial crimes and ensure the stability and integrity of Belgium’s financial system. The country is taking a proactive approach to combating:

  • Money laundering
  • Terrorist financing
  • Other financial crimes

By imposing strict penalties, Belgium is sending a strong message that such activities will not be tolerated.