Financial Crime World

Title: Financial Crime Laws in Belgium: A Comprehensive Q&A

Brussels, March 1, 2020

Belgium’s financial crime laws have been the focus of growing attention in recent years as the European Union and international community intensify their efforts against corporate fraud, bribery, and other economic wrongdoings. In this Q&A guide, we explore the legal framework governing these issues in Belgium.

Primary Areas of Financial and Business Crime Law in Belgium

  1. Corporate fraud
  2. Bribery and corruption
  3. Insider dealing and market abuse
  4. Money laundering and terrorist financing
  5. Financial record keeping
  6. Due diligence
  7. Corporate liability
  8. Immunity and leniency
  9. Whistleblowing

What is Corporate Fraud in Belgium?

Corporate fraud refers to any deception or manipulation used for financial gain. Examples include:

  1. Accounting fraud
  2. Insider trading
  3. False statements to investors or regulators

Bribery and Corruption

The Belgian Penal Code criminalizes both active and passive bribery and corruption. Legislation such as the Code of Economic Law and the Anti-Corruption Act further strengthens Belgium’s stance against these practices.

Insider Dealing and Market Abuse

The Belgian Act of 2 May 2007 on the Public Offering of Securities and the Continuous Obligations of Issuers sets rules against insider dealing. The Belgian Financial Supervisory Authority (FSMA) enforces market abuse regulations.

Money Laundering and Terrorist Financing

Belgian legislation, including the Money Laundering and Terrorist Financing Prevention Act, imposes requirements on regulated financial institutions. These include:

  1. Know Your Customer (KYC) procedures
  2. Suspicious Transactions Reporting (STR) procedures

Financial Record Keeping

Belgian companies and organizations must maintain accurate financial records in accordance with the Belgian Code of Companies and Associations and the Belgian Income Tax Code.

Due Diligence

To prevent financial crimes, businesses should:

  1. Conduct risk assessments
  2. Follow established due diligence procedures, such as:
    • Customer identification
    • Ongoing monitoring
    • Reporting of suspicious transactions

Liability for Financial Crimes

In Belgium, both legal entities and individuals can be held liable for financial crimes. However, some exceptions exist for:

  1. Executive board members or directors acting in good faith and with due care.

Corporate Immunity and Leniency

Belgian legislation, including the Corporate Criminal Liability Act and the Criminal Code, offers immunity or leniency for companies that:

  1. Actively cooperate with investigative authorities
  2. Report financial crimes

Whistleblowing and Protecting Confidential Informants

Belgian whistleblowing laws provide protections and incentives for individuals. These include the Belgian Law of 25 February 1993 on the Reporting and Punishment of Economic Crimes, which protects their confidentiality.