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FPS Economy Closely Monitors High-Risk Professions to Combat Money Laundering and Terrorist Financing

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The Federal Public Service Economy (FPS Economy) plays a crucial role in monitoring several high-risk professions that are susceptible to money laundering and terrorist financing. These include service providers, real estate agents, diamond traders, finance leasing companies, art and antiques traders, and financial institutions.

Who Falls Under the Act?

The FPS Economy monitors compliance with anti-money laundering and counter-terrorism financing (AML/CTF) regulations for the following sectors:

  • Service providers
  • Real estate agents
  • Diamond traders
  • Finance leasing companies
  • Art and antiques traders
  • Financial institutions

What Are the Sanctions for Non-Compliance?

The sanctions for non-compliance with AML/CTF regulations include administrative fines ranging from €250 to €1,250,000 for non-financial professions and 5% to 10% of annual net turnover for financial professions.

Restrictions on Cash Payments and Donations

Cash payments are restricted in certain situations. The FPS Economy monitors compliance with these restrictions, which vary depending on the type of transaction:

  • Property sales: only bank transfer or cheque
  • Certain transactions between consumers and financial institutions: no limitation
  • Public sales under judicial supervision: up to €3,000
  • Purchase/sale of precious metals, scrap metals, or copper cables by professionals: prohibited
  • Purchase of precious metals, old metals, or copper cables by professionals from consumers: prohibited

Consequences for Non-Compliance

In case of payment or donation in cash exceeding the maximum permissible amounts, the sanction is a criminal fine ranging from €2,000 to €1,800,000.

Role of the FPS Economy

The FPS Economy’s main tasks include:

  • Drawing up regulatory standards
  • Checking compliance with AML/CTF regulations for sectors falling under its competence
  • Monitoring compliance with restrictions on cash payments and donations

The FPS Economy may request information, conduct on-site inspections, and exercise enforcement powers to ensure compliance with the law.

Last Update

This article was last updated on April 22, 2024.