Financial Crime World

Belgium’s Financial Crime Investigators Unveil Their Toolbox: A Guide to Key Techniques and Authorities

In the ongoing battle against financial crime, Belgian authorities have honed their skills to tackle a range of offenses, from fraud and money laundering to tax evasion and market abuse. As companies and individuals navigate this complex landscape, it is essential to understand the key investigation techniques and authorities involved.

Risk of Criminal Liability for Companies

One of the most pressing concerns for corporates is the risk of criminal liability. While companies cannot be prosecuted in their own right, they can be held responsible for the actions of their directors and officers. The Belgian Criminal Code and relevant regulations outline the offenses applicable to companies, including:

  • Fraud
  • Money laundering
  • False accounting
  • Tax evasion
  • Market abuse
  • Corruption
  • Sanctions

In recent years, Belgium has seen a significant increase in prosecutions against company directors and officers personally liable for financial crimes. These offenses include:

  • Misappropriation of assets
  • Embezzlement
  • Breaches of fiduciary duties

The most common prosecuted offenses are fraud, money laundering, and tax evasion.

Lead Prosecuting Authorities

Belgium’s lead prosecuting authorities, including the Public Prosecutor’s Office (Fiscalité et Affaires Économiques) and the Federal Police (Fédéral Bureau van Politie), play a crucial role in investigating and prosecuting financial crime. These agencies have the power to:

  • Conduct raids
  • Seize documents and evidence
  • Interview suspects

Investigation Techniques

In conducting interviews, Belgian authorities have robust powers to gather information. While suspects have the right to remain silent and be represented by a lawyer, there is no absolute right to silence. Interviews are often recorded or transcribed, and investigators may use techniques such as:

  • Undercover operations
  • Surveillance

to build cases.

Extraterritorial Effect

Belgium’s laws and regulations governing financial crime also have extraterritorial effect, catching conduct of nationals or companies operating overseas. This means that Belgian authorities can investigate and prosecute offenses committed abroad if they have a connection to the country.

Data Analytics and Forensic Techniques

In addition to these powers, Belgian investigators are increasingly using advanced data analytics and forensic techniques to track down financial crimes. The use of legal professional privilege is strictly regulated in Belgium, with communications protected from being produced or seized by financial crime authorities.

Rights Regarding Privacy and Data Protection

As companies and individuals navigate the complex world of financial crime investigations, it is essential to understand their rights regarding privacy and data protection. In Belgium, there are strict regulations governing the handling of personal data, and individuals have a right to:

  • Access their own data
  • Correct their own data

Successor Criminal Liability

Belgium’s doctrine of successor criminal liability means that companies can be held responsible for the actions of their predecessors or successors in mergers and acquisitions. Prosecuting authorities must consider various factors when deciding whether to charge, including:

  • Gravity of the offense
  • Level of culpability
  • Mitigating circumstances

Securing Conviction

To secure conviction, prosecutors must meet a high evidential standard, and there is a statute of limitations for criminal matters. In cases where prosecution is not deemed necessary, Belgian authorities may use alternative mechanisms such as:

  • Deferred prosecution agreements
  • Non-prosecution agreements

to resolve financial crime issues.

Plea Bargaining

In recent years, Belgium has seen an increase in the use of plea bargaining, allowing prosecutors and defendants to negotiate reduced sentences in exchange for cooperation. Companies that voluntarily disclose financial crimes to prosecuting authorities may be eligible for:

  • Leniency policies
  • Discount policies

although these are subject to approval by the court.

Sentencing

In sentencing, Belgian courts consider a range of factors, including:

  • Severity of the offense
  • Level of culpability
  • Mitigating circumstances

The courts also have discretion to impose fines, imprisonment, or both.

Looking Ahead

As Belgium continues to tackle financial crime, companies and individuals must be aware of their rights of appeal and the potential penalties for non-compliance. In recent years, Belgian authorities have shown a renewed focus on tackling financial crimes, with notable cases including high-profile fraud investigations and money laundering prosecutions. There are plans to develop the legal, regulatory, and enforcement framework to better combat financial crime. While there may be areas for improvement, Belgium’s financial crime investigators are well-equipped to tackle this complex and evolving landscape.