Title: New Belgian Law: Combating Money Laundering and Terrorism Financing
Brussels - New Legislation to Combat Money Laundering and Terrorism Financing
The Belgian parliament recently passed a new law, the Law of 18 September 2017, to combat money laundering and terrorism financing. The legislation comes into force on January 1, 2021.
Methods of Money Laundering
The law defines money laundering as the conversion, transfer, or concealment of property derived from criminal activity. There are several ways one can engage in money laundering:
- Converting or transferring illicit funds to mask their criminal origin.
- Hiding the true nature of money or property by concealing its source, location, or ownership.
- Acquiring, possessing, or using money or property derived from criminal activity.
- Participating in or associating with criminal activities related to money laundering or terrorism financing.
Criminal Activities Triggering Money Laundering
The legislation lists extensively the criminal activities that trigger the need for money laundering:
- Terrorism and terrorist financing
- Organized crime
- Illicit trafficking in:
- Narcotic drugs and psychotropic substances
- Human beings
- Human trafficking
- Prostitution exploitation
- Illicit trafficking in human organs or tissues
- Frauds against the European Union’s financial interests
- Serious fiscal fraud
- Social fraud
- Embezzlement and corruption
- Serious environmental crime
- Currency or banknote counterfeiting
- Product counterfeiting
- Piracy
- Stock market-related offenses
- Improper securities offerings
- Unauthorized provision of banking, financial, insurance, or transfer services or currency trading
- Breach of trust
- Misappropriation of corporate assets
- Hostage-taking
- Theft
- Extortion
- State bankruptcy
- Computer crime
Scope of the Law
It is essential to note that this law primarily focuses on serious criminal activities and excludes other forms of money laundering. The listed offenses are those that, under Belgian penal law, are punishable by a prison sentence of six months or more.
Reporting and Applicability of the Law
The legislation obliges reporting entities to report any transactions or facts that give grounds for a reasonable suspicion of money laundering. However, they are not required to identify the underlying criminal offense responsible for the suspicious activities. The law applies to funds or property obtained in Belgium or abroad, provided that the alleged money laundering activities originated from criminal acts within the European Union or third countries.