Belgium Grapples with Surge in Money Laundering Reports

A Growing Concern: Money Laundering Schemes Linked to Drug Trafficking

The number of money laundering reports received by Belgian authorities has seen a staggering 50% increase in 2023, with the country struggling to contain a growing number of professional money laundering schemes linked to drug trafficking.

Record Number of Reports Filed

According to the latest annual report from the Financial Information Processing Unit (CTIF), a total of 79,211 reports of potential money laundering activity were received last year. This includes suspicious transactions and funds, as well as information from foreign counterparts and government departments.

• The majority of these reports, 63,753, were new cases, representing a 48% increase on the 42,970 new cases reported in 2022.
• The total monetary value of suspicious transactions reported to public prosecutors jumped from €1.62 billion to €2.43 billion, a 50% increase.

Banks Play a Key Role

Banks are becoming more vigilant, with a more than 70% increase in suspicion reports filed by banks between 2022 and 2023. This surge in reporting is likely due to the growth of drug trafficking in Belgium, which has led to the development of a flourishing professional money laundering industry.

Challenges in Tackling Money Laundering

The greatest challenge for CTIF is establishing a link between drug traffickers and those involved in these laundering networks. These networks often use cash or underground criminal banking networks that operate outside of the legal financial system.

• According to the report, the majority of income from drug trafficking in Belgium is being channeled through professional money laundering networks, rather than by the traffickers themselves.
• The use of dormant companies by money laundering schemes is a particular concern, as these schemes rely on a constellation of companies and bank accounts, as well as front men and mules both in Belgium and abroad.

Efforts to Combat Money Laundering

CTIF chairman Philippe de Koster emphasized that a number of measures have been taken to tackle the issue, including the delisting of a large number of dormant companies from the Crossroads Bank for Businesses. However, the surge in money laundering reports suggests that more needs to be done to combat this growing problem.

Conclusion

Belgium’s central location in Europe has made it a hub for international drug trafficking, and the country is struggling to contain the growth of professional money laundering schemes linked to this activity. While efforts have been made to tackle the issue, more needs to be done to effectively combat money laundering in Belgium.