Belgium’s National Bank: Tackling Money Laundering and Terrorist Financing through a Comprehensive Risk Assessment

Home > Financial Oversight

The National Bank of Belgium (NBB), as the country’s central banking institution, plays a crucial role in maintaining financial stability and combating financial crimes, including money laundering and terrorist financing. This article delves into how the NBB implements a risk-based approach and carries out thorough risk assessments to mitigate these illicit activities.

NBB’s Role in Combating Money Laundering and Terrorist Financing

Commitment to Preventing Financial Crimes

The NBB is dedicated to adhering to legal and regulatory frameworks aimed at preventing money laundering and terrorist financing. This commitment is grounded in Belgium’s Anti-Money Laundering Law and Anti-Money Laundering Regulation.

Legal and Regulatory Framework

Risk-Based Approach and Overall Risk Assessment

The Anti-Money Laundering Law demands that financial institutions adopt a risk-based approach and perform overall risk assessments. Relevant articles include 7 (risk-based approach) and 16 to 18 and Annexes I to III (risk assessment) (1). Additionally, the NBB abides by guidelines from the European Banking Authority (EBA) and the Financial Action Task Force (FATF).

Regulatory Requirements for Financial Institutions

For NBB-regulated financial institutions, Articles 3 and 5 require an overall risk assessment, while Article 6 mandates a group-level assessment (2).

Supranational Risk Assessment (SNRA)

European Union Reports on Money Laundering and Terrorist Financing Threats

The European Commission and the EBA periodically release reports detailing the threats of money laundering and terrorist financing within the European Union (3).

Sectoral Risk Assessment

NBB’s Periodic Assessments for Belgian Financial Institutions

The NBB conducts regular sectoral assessments for Belgian financial institutions under its supervision to evaluate money laundering and terrorist financing risks. The most recent evaluations were in 2023 and 2020 (4).

Risk Factors and Other Reference Documents

EU Authorities’ Assessments and Guidelines

The NBB utilizes risk factors from EU authorities’ assessments and guidelines, including a report on risks associated with payment institutions (5). Moreover, recommendations from the FATF, the Basel Committee on Banking Supervision (BCBS), and the European Securities and Markets Authority (ESMA) support effective risk management practices.

Conclusion

This article serves as a summarized overview of the NBB’s efforts to evaluate and address money laundering and terrorist financing risks through a risk-based approach and overall risk assessment within the Belgian financial sector.

Disclaimer: This English text is an unofficial translation, and it should not be used as a basis for resolving any dispute.