Financial Crime World

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PROFESSIONS SUBJECT TO THE MONEY LAUNDERING AND TERRORIST FINANCING ACT BENEFIT FROM PROTECTIONS AND IMMUNITIES

Professions subject to the Money Laundering and Terrorist Financing Act (ML/TF Act) in Belgium have been granted various protections and immunities when reporting suspicions of money laundering or terrorist financing to the Financial Intelligence Processing Unit (CTIF-CFI).

Protections and Immunities

  • Individuals who report such suspicions in good faith are protected from threats and acts of aggression.
  • They also enjoy judicial immunity and disciplinary immunity.
  • Their identity remains anonymous when information is shared with the Public Prosecutor, Federal Public Prosecutor’s Office or foreign authorities responsible for combating money laundering and terrorist financing.

Role of CTIF-CFI

The Financial Intelligence Processing Unit (CTIF-CFI) plays a crucial role in analyzing information received from professions subject to the ML/TF Act. In cases of serious indications of money laundering or terrorist financing, CTIF-CFI forwards this information to the Public Prosecutor or Federal Public Prosecutor.

Sanctions for Non-Compliance

Professions subject to the ML/TF Act face administrative fines ranging from €250,000 to €1,250,000 for non-financial professions and 5% to 10% of their annual net turnover for financial professions in case of non-compliance with the law.

  • Cash payments and donations exceeding certain limits are also subject to criminal sanctions, with fines ranging from €2,000 to €1,800,000.

Compliance Monitoring

Different authorities monitor compliance with the ML/TF Act across various sectors. The FPS Economy is responsible for monitoring compliance with the restriction on cash payments and donations in specific sectors, while other authorities control other aspects of the law.

  • Authorities have the power to request information and conduct on-site inspections as needed.

Role of FPS Economy

The FPS Economy plays a key role in regulating standards and checking compliance with legal obligations for professions subject to the ML/TF Act. The agency also monitors compliance with cash payment restrictions.

  • Professions subject to the ML/TF Act must ensure they comply with their legal obligations, including reporting suspicions of money laundering or terrorist financing and adhering to cash payment limits.
  • Failure to do so can result in severe sanctions.