Financial Institutions Urged to Report Suspicious Transactions Promptly
Combating Money Laundering and Terrorist Financing
In an effort to combat money laundering and terrorist financing, financial institutions in Belgium are being reminded of their obligation to report suspicious transactions promptly.
Obligation to Report Suspicious Transactions
According to Article 51 of the Anti-Money Laundering Law, suspicions should be reported to CTIF-CFI (the Financial Information Processing Unit) immediately before a transaction is carried out. However, there are certain exceptions that allow for reporting after a transaction has taken place.
Exceptions to Reporting
In cases where it is not possible to delay carrying out a transaction due to its nature, or if delaying the transaction could prevent prosecution of persons benefiting from money laundering, reporting can occur after the transaction has been completed. These derogations must be implemented strictly and CTIF-CFI should be informed of the reason why notification was delayed.
Reporting Requirements
Financial institutions are also required to ensure that reportings are drawn up correctly and accurately, regardless of how they are submitted. The National Bank of Belgium (NBB) notes that a clear and concise presentation of information is essential for the efficiency of the anti-money laundering and combating the financing of terrorism policy.
Follow-up Reporting
In addition to initial reportings, financial entities are also obligated to follow up on requests for additional information from CTIF-CFI within set time limits. Any new information that could invalidate, confirm or modify previously reported suspicious transactions should be reported immediately to CTIF-CFI.
Importance of Accurate and Timely Reporting
“Financial institutions play a crucial role in detecting and reporting suspicious transactions,” said an NBB spokesperson. “We urge them to take their obligations seriously and report any suspicions promptly to help combat money laundering and terrorist financing.”
For financial institutions, the importance of accurate and timely reporting cannot be overstated. By following the guidelines outlined in the Anti-Money Laundering Law, they can help ensure that these criminal activities are detected and prevented.
Key Takeaways
- Financial institutions must report suspicious transactions to CTIF-CFI immediately before a transaction is carried out.
- Exceptions to reporting exist for certain cases where delaying the transaction could prevent prosecution of persons benefiting from money laundering.
- Reportings must be drawn up correctly and accurately, regardless of how they are submitted.
- Follow-up reports are required in response to requests for additional information from CTIF-CFI.
- Accurate and timely reporting is essential for combating money laundering and terrorist financing.