Financial Crime World

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Professions Subject to Money Laundering/Terrorist Financing Act Enjoy Legal Protections

A new law aims to prevent the misuse of financial systems for money laundering and terrorist financing. The Professions Subject to Money Laundering/Terrorist Financing Act (ML/TF Act) ensures that certain professions are equipped with legal protections when reporting suspicions of money laundering or terrorist financing.

Under the ML/TF Act, persons subject to the law who report suspicious activities to the Financial Intelligence Processing Unit (CTIF-CFI) in good faith are protected from:

  • Threats and acts of aggression
  • Judicial immunity
  • Disciplinary immunity

These individuals can also remain anonymous, as their identities will not be disclosed when CTIF-CFI informs relevant authorities or testifies in court.

Authorities Bound by Professional Secrecy

Members of the CTIF-CFI, police, and external experts are bound by professional secrecy. They may only disclose information received while performing their duties with some exceptions.

Role of CTIF-CFI in Reporting Suspicious Activities

The main role of the CTIF-CFI is to:

  • Analyze information it receives
  • Forward serious indications of money laundering or terrorist financing to the Public Prosecutor or Federal Public Prosecutor
  • Oppose execution for a period of five days and ask the Public Prosecutor or Federal Prosecutor to extend this opposition in case of suspected transactions

Sanctions for Non-Compliance

The ML/TF Act imposes administrative fines ranging from:

  • 250 to 1,250,000 euros for non-financial professions
  • 5,000 to 10% of annual net turnover for financial professions

These sanctions are imposed by the competent authority and collected by the FPS Finance.

Restrictions on Cash Payments and Donations

The ML/TF Act restricts cash payments and donations in certain situations, including:

  • Selling a property, where payment can only be made by bank transfer or cheque
  • Public sales under the supervision of a judicial officer, where cash payments up to 3,000 euros are permitted

Monitoring Compliance

Different authorities monitor compliance with the ML/TF Act, including:

  • The FPS Economy, which monitors compliance with the restriction on payments and donations in cash and has the power to request information and conduct on-site inspections
  • Other authorities responsible for monitoring compliance with other aspects of the law

Role of FPS Economy

The main tasks of the FPS Economy are to:

  • Draw up regulatory standards
  • Check whether persons subject to the Act comply with their legal obligations
  • Monitor compliance with the restriction on payments and donations in cash

As the law takes effect, it is crucial for professions subject to the ML/TF Act to understand their legal obligations and the protections available to them when reporting suspicious activities. By working together, authorities and professionals can prevent money laundering and terrorist financing.