Title: Belgian Financial Institutions’ Robust Approach to Money Laundering and Terrorist Financing Prevention
The Pivotal Role of the National Bank of Belgium (NBB)
Brussels - The National Bank of Belgium (NBB) plays a crucial role in safeguarding the Belgian financial sector from money laundering and terrorist financing. With a robust regulatory framework and stringent oversight, the NBB demonstrates its commitment to financial crime prevention.
A Robust Regulatory Framework
Belgian Legislation
The Belgian anti-money laundering and terrorist financing legislative framework includes:
- The Anti-Money Laundering Law of 18 September 2017
- The Anti-Money Laundering Regulation of 21 November 2017
- Article 505 of the Criminal Code
- The Amending Law of 20 July 2020
Sectoral Risk Assessments
The NBB conducts sectoral risk assessments to identify and evaluate money laundering and terrorist financing risks in Belgian financial institutions subject to its supervisory authority. Notable reports include:
- Sectoral assessment of money laundering risks in the Belgian financial sector in 2023
- 2020 and earlier assessments (available on the NBB’s website)
Circulars and Communications
The NBB disseminates circulars and communications to keep financial institutions informed of its expectations and guidelines on anti-money laundering and terrorist financing measures, such as:
- Transaction monitoring
- Enhancing due diligence
- Financial sanctions
Financial Sanctions
The NBB applies financial sanctions in line with the Belgian Treasury’s guidelines. Institutions under its supervision must comply with these measures to prevent money laundering and terrorist financing activities.
Collaborations and Partnerships
To further enhance its efforts, the NBB collaborates with various entities, including:
- The Financial Intelligence Processing Unit (CTIF-CFI)
- The Financial Services and Markets Authority (FSMA)
- The European Supervisory Authorities (Joint Committee and European Banking Authority)
These collaborations include agreements on information sharing and public-private partnerships.
European and International Cooperation
Belgium’s anti-money laundering and terrorist financing efforts do not limit themselves to the national framework. The country participates in European initiatives and international organizations to promote effective financial crime prevention measures and maintain a unified approach:
- The European Union’s Fourth, Fifth, and Sixth Anti-Money Laundering Directives
- The Financial Action Task Force (FATF)
Conclusion
The NBB’s comprehensive measures aim to create an environment that not only complies with anti-money laundering and terrorist financing laws but also safeguards consumers, investors, and the broader financial system. Belgian financial institutions’ robust approach to money laundering and terrorist financing prevention contributes to maintaining the integrity of the Belgian and global financial sector.