Financial Crime World

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Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Regulations: Verification of Customer Identity

The National Bank of Belgium (NBB) has issued guidelines on AML/CFT regulations, specifically focusing on the verification of customer identity. This article provides a summary of key points, recommendations, and the legislative framework governing these regulations.

Key Points

Consultation of the National Register

  • Financial institutions should consult the National Register to obtain information about beneficial owners of companies and legal arrangements.
  • Obliged entities must take additional measures to corroborate data obtained from the register using a risk-based approach.

Verification of Customer Identity

  • In standard-risk situations, financial institutions can verify company identity using documents accepted in Belgian law, such as coordinated statutes or published in the Belgian Official Gazette.
  • Financial institutions should verify identification data of legal arrangements like trusts using documents with probative value in the applicable legislation.

Recommendations

Best Practices for Identity Verification

  • Use electronic identity cards for remote identity checks whenever possible.
  • Obtain supporting documents from customers, official sources, or reliable third-party information providers.
  • Consult publicly available information and use external consultants when necessary.
  • Ensure that remote customer onboarding solutions meet EBA Guidelines conditions.

Legislative Framework

Relevant Laws and Regulations

  • Anti-Money Laundering Law: Requires financial institutions to identify and verify the identity of beneficial owners.
  • General Data Protection Regulation (GDPR): Applies to data protection and privacy aspects of AML/CFT regulations.
  • Law of 30 July 2018 on the Protection of Natural Persons with Regard to the Processing of Personal Data: Implements GDPR in Belgian law.

References

  • NBB Guidelines on Anti-Money Laundering and Combating the Financing of Terrorism (2022)
  • EBA Guidelines on Remote Customer Onboarding Solutions (2022)

These guidelines provide detailed guidance for financial institutions to implement effective AML/CFT measures, ensuring compliance with relevant regulations and protecting against money laundering and terrorist financing activities.