Financial Crime World

Belgian Regulator Cracks Down on Money Laundering: Penalties for Financial Institutions Hindering Inspections or Ignoring Cash Limits

The National Bank of Belgium (NBB), the Belgian financial regulatory authority, is taking a firm stance against money laundering in the country. Here’s what financial institutions need to know about the penalties for hindering inspections or disregarding cash limits, as outlined in the Anti-Money Laundering Law.

Offenses and Consequences

The Anti-Money Laundering Law outlines two distinct offenses that could result in significant sanctions for financial institutions operating under NBB supervision.

Obstructing NBB Inspections

Anyone who obstructs NBB inspections in Belgium or abroad, refuses to communicate required information or knowingly provides false or incomplete information faces:

  • Fines
  • Imprisonment for a term between one month and one year

Additionally, financial institutions may face a fine between €250,000 and €2,500,000.

Cash-limit Restrictions

Infractions relating to Article 67 cash-limit restrictions under the Anti-Money Laundering Law trigger fines totaling between €250 and €225,000. These fines cannot exceed 10% of the illegal payment or donation.

Criminal Liability

Legal entities are civilly responsible for the criminal fines imposed on their statutory governing bodies, senior management members, or agents.

NBB’s Role in Criminal Proceedings

The NBB has the power to intervene in criminal proceedings against financial institutions, regardless of any demonstrable harm. This intervention should align with the rules of the civil party.

Reporting to the Public Prosecutor

Importantly, Article 90/1 of the Anti-Money Laundering Law requires the NBB to inform the Public Prosecutor when a regulated financial institution is detected to have committed one of these offenses.

Conclusion

These actions from the NBB reflect their commitment to fighting money laundering and ensuring transparency within the Belgian financial sector. Financial institutions are expected to adhere to these regulations to avoid penalties and maintain integrity in their operations.