NBB Relaxes Reporting Requirements for Certain Financial Institutions

The National Bank of Belgium (NBB) has introduced a new exemption policy to reduce the administrative burden on financial institutions. This policy aims to ensure that reporting requirements are proportionate to the objectives pursued and do not unduly burden financial institutions.

Exemption Criteria

To be eligible for the exemption, financial institutions must meet certain criteria:

• Do not conduct activities in Belgium or are not significantly exposed to money laundering and terrorist financing (ML/FT) risks in the country.
• Fall within the scope of the Anti-Money Laundering Law but are not subject to ML/FT risks in Belgium. This includes institutions with a limited presence in the country or those that operate in low-risk sectors.

Eligibility Requirements

To apply for the exemption, financial institutions must submit a motivated request to the NBB, including:

• Information on their business model
• Reasons for establishing a Belgian presence
• Specific functions and tasks conferred upon the Belgian establishment

Exemption Process

If approved, the exemption will remain in place until circumstances change. In such cases, the institution must notify the NBB annually of any changes that may affect its ML/FT risks or obligations.

Obligations Remain

The NBB emphasized that the exemption does not release institutions from all anti-money laundering obligations. However, it may apply the principle of proportionality to reduce the burden on institutions where necessary.

Objective

The new policy is aimed at promoting a more efficient and effective supervision framework. By reducing the administrative burden, financial institutions can focus on their core activities and provide better services to their customers.

Contact Information

Financial institutions interested in applying for the exemption should contact the NBB by email at [email protected].