Financial Crime World

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RIGHTS OF PROFESSIONS SUBJECT TO THE ML/TF ACT: WHAT YOU NEED TO KNOW

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In an effort to combat money laundering and terrorist financing, the financial sector is subject to strict regulations. But what rights do professionals have when reporting suspicious activities? And how are they protected from potential threats?

Judicial Immunity and Professional Secrecy

According to Article 57 of the ML/TF Act, individuals who report suspicions of money laundering or terrorist financing to the Financial Intelligence Processing Unit (CTIF-CFI) enjoy:

  • Judicial immunity, both criminal and civil
  • Disciplinary immunity This means that they cannot be held liable for making a good-faith report.

Additionally, Article 83 states that CTIF-CFI members, police officers, and external experts are bound by professional secrecy. They may not disclose information received while performing their duties, except in specific circumstances.

Role of CTIF-CFI

The unit’s primary function is to:

  • Analyze information it receives
  • Forward serious indications of money laundering or terrorist financing to the Public Prosecutor or Federal Public Prosecutor (Article 76, §3 and Article 79) CTIF-CFI may also temporarily block a transaction if it suspects it is related to money laundering or terrorist financing. This opposition can be extended by the Public Prosecutor or Federal Prosecutor (Article 80).

Sanctions for Non-Compliance

If someone fails to comply with the ML/TF Act, the sanctions vary depending on whether the individual is from a financial or non-financial profession:

  • For non-financial professions, the fine ranges from €250 to €1.25 million
  • For financial professions, it can be up to 10% of their annual net turnover (Article 132) The FPS Finance collects these fines (Article 134). In addition, there are specific restrictions on cash payments and donations, with penalties for non-compliance.

Restrictions on Cash Payments and Donations

For example:

  • When selling a property, payment must be made by bank transfer or cheque
  • Cash payments up to €3,000 are allowed at public sales under judicial supervision
  • Certain transactions involving precious metals or copper cables are prohibited Failure to comply with these restrictions can result in criminal fines of between €2,000 and €1.8 million (Article 137).

Monitoring Compliance

The FPS Economy monitors compliance with the ML/TF Act through:

  • On-site inspections
  • Requests for information It also has the power to draw up regulatory standards and check whether individuals are meeting their legal obligations.

Summary

Professionals subject to the ML/TF Act have a range of rights and protections when reporting suspicious activities. They are protected from threats and acts of aggression, enjoy judicial immunity, and are bound by professional secrecy. The FPS Economy plays a key role in monitoring compliance with the Act and enforcing its provisions.