Financial Crime World

Belgian Banks Face Tougher Ethics Rules with New Oath and Disciplinary System

In an effort to boost public confidence in the banking sector, Belgium has introduced stricter ethics rules for financial institutions. The new regulations come into effect in two stages, starting from January 15, 2025.

New Ethics Rules for Belgian Banks

The law requires employees of credit institutions, including those governed by Belgian or foreign laws, as well as banking and investment services agents, to take an oath and adhere to a set of ethical principles based on:

  • Honesty: Acting with integrity and transparency in all interactions with customers.
  • Integrity: Conducting business in a fair and impartial manner.
  • Competence: Possessing the necessary skills and knowledge to perform job duties effectively.
  • Professionalism: Demonstrating expertise and adhering to industry standards.

These principles also emphasize the importance of:

  • Acting in customers’ interests
  • Treating customers fairly

Disciplinary System for Non-Compliance

The Financial Services and Markets Authority (FSMA) has been granted the power to impose disciplinary sanctions, including:

  • Warnings: Official notifications of non-compliance.
  • Reprimands: Formal censures for violating ethics rules.
  • Professional bans: Temporary or permanent prohibition from working in the financial sector.

A central register of disciplinary actions will be maintained to keep track of offenders.

Complaint Procedure

Customers who believe that banks have not adhered to these ethics rules can lodge a complaint with the FSMA. The FSMA is still working on specifying the procedures for handling complaints.

Implementation Schedule

The new system does not affect the prudential supervisory powers of the European Central Bank (ECB) and the National Bank of Belgium (NBB).

  • First stage: Starting from January 15, 2025, employees subject to fit-and-proper assessments and senior managers in credit institutions will be covered.
  • Second phase: Starting from July 15, 2026, all employees working for banking and investment services agents, as well as those directly involved in banking activities or providing banking services on Belgian territory, will be included.

Practical Implementation

The FSMA has published a FAQ on the practical implementation of the banking oath and disciplinary regime, which can be accessed online.