Financial Institutions and DNFBPs Must Notify CTIF-CFI of Suspicious Transactions

In an effort to combat money laundering (ML) and terrorist financing (TF), financial institutions and designated non-financial businesses and professions (DNFBPs) in Belgium are required to notify the Belgian Financial Intelligence Processing Unit (CTIF-CFI) before executing suspicious transactions.

Requirements for Notification

According to a recent report, financial institutions and DNFBPs must indicate any deadlines for completing the transaction. However, if they are unable to inform CTIF-CFI prior to the completion of the transaction due to the nature of the transaction or because delaying execution would prevent prosecution of the suspected ML/TF beneficiaries, they must notify CTIF-CFI immediately afterwards, stating the reasons for doing so.

Types of Reports Received by CTIF-CFI

CTIF-CFI receives reports from various financial sector entities, including:

• Banks
• Exchange offices
• The Belgian Post
• Others

Some reporting entities may also report to CTIF-CFI according to thresholds or indicators.

Number of Reports Received in 2014

According to Table 1, which provides an overview of the number of reports received by CTIF-CFI from main categories of reporting entities in 2014:

Reporting Entities

Some reporting entities may use indicators or thresholds when reporting financial transactions to CTIF-CFI. For example:

• Casinos
• Notaries
• Real estate agents

These entities apply indicators or thresholds to determine whether a transaction is suspicious.

Additionally, supervisors of businesses and professions under their jurisdiction are also required to notify CTIF-CFI if they identify facts that may be related to ML or TF during inspections.

Protection from Professional Sanctions

The report emphasizes that no civil, criminal, or disciplinary proceedings can be instituted against institutions or persons who disclose information in good faith, nor can professional sanctions be imposed on them.

Conclusion

Overall, the reporting requirements for financial institutions and DNFBPs play a crucial role in helping CTIF-CFI to identify and prevent ML and TF activities. By notifying CTIF-CFI of suspicious transactions, these entities are contributing to the efforts to combat these serious crimes.