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Belgium mutual-evaluation-report-2015

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FATF Mutual Evaluation Report of Belgium - 2015

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Belgium mutual-evaluation-report-2015

  1. 1. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 1 Anti-money laundering and counter- terrorist financing (AML/CFT) measures in Belgium Fourth Round Mutual Evaluation Key findings, ratings and priority actions 23 April 2015 www.fatf-gafi.org/topics/mutualevaluations/documents/mer-belgium-2015.html
  2. 2. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Key findings  Belgium’s legal framework for AML/CFT is not yet fully in line with the FATF requirements as revised in 2012.  Belgium conducts a large part of its AML/CFT activities and initiatives on the basis of risk, but its understanding of these risks is fragmented and incomplete.  An overall AML/CFT approach still needs to be put together, based on prioritising risks and allocating resources.  Belgium has achieved substantial results in international cooperation, use of financial information and prosecution of terrorist financing acts. 2
  3. 3. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Key findings  The financial intelligence unit (CTIF) collects good quality data, but needs to work more closely with AML/CFT supervisors, businesses and professions covered by the system, and with the criminal prosecution authorities to help pool and enhance knowledge and analyses.  The financial sector has a good understanding of risks and seems to take appropriate preventive action, but tighter risk-based AML/CFT controls will ensure that obligations are adequately applied.  Some money value transfer service (MVTS) providers, have inadequate understanding and implementation of AML/CFT measures.22-May-15 3
  4. 4. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Key findings  The suspicious transaction reporting policy of some MVTS is not adequate, and there are shortcomings in the controls in place for these institutions.  The implementation of AML/CFT measures by diamond dealers does not seem adequate to guarantee control of the sector’s high risks.  Supervision of these players remains extremely limited, notably due to a lack of available resources, and despite the proven risk of money being laundered into this sector, suspicious transaction reports are totally lacking.  The number of investigations and prosecutions seems insufficient up to now given the identified level of risk, even though two significant cases are currently under investigation. 22-May-15 4
  5. 5. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Key findings  The non-financial sector has improved its commitment to AML/CFT. But, not all designated non-financial businesses and professions concerned have taken action, including a number of at-risk professions such as lawyers and casinos.  Competent authorities verify if activities at risk for money laundering and terrorist financing, such as trade in used cars or gold, comply with restrictions on payments in cash. More resources are needed in this area.  Competent authorities can obtain information on the beneficial owners of legal persons thanks to access to public registers, but the updating of these registers is inconsistent. 22-May-15 5
  6. 6. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Key findings  Authorities responsible for preventing and combatting terrorism and terrorist financing are well-co-ordinated, know the current risks and are making encouraging progress to mitigate these risks.  Criminal prosecution authorities have the legal authority and tools to effectively combat ML, but greater co- ordination between the different partners in the law enforcement system will improve detection and prosecution of money laundering. 22-May-15 6
  7. 7. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Ratings – Effectiveness (1/3) 7 Immediate outcome of an effective system to combat money laundering (ML) and terrorist financing (TF) Extent to which Belgium has achieved this objective 1. ML and TF risks are understood and, where appropriate, actions co-ordinated domestically to combat ML and TF Substantial 2. International co-operation delivers appropriate information, financial intelligence, and evidence, and facilitates action against criminals and their assets Substantial 3. Supervisors appropriately supervise, monitor and regulate financial institutions and designated non-financial businesses and professions (DNFBPs) for compliance with AML/CFT requirements commensurate with their risks. Moderate 4. Financial institutions and DNFBPs adequately apply AML/CFT preventive measures commensurate with their risks, and report suspicious transactions. Moderate
  8. 8. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 8 Immediate outcome of an effective system to combat money laundering (ML) and terrorist financing (TF) Extent to which Belgium has achieved this objective 5. Legal persons and arrangements are prevented from misuse for money laundering or terrorist financing, and information on their beneficial ownership is available to competent authorities without impediments Moderate 6. Financial intelligence and all other relevant information are appropriately used by competent authorities for money laundering and terrorist financing investigations. Substantial 7. Money laundering offences and activities are investigated and offenders are prosecuted and subject to effective, proportionate and dissuasive sanctions Moderate 8. Proceeds and instrumentalities of crime are confiscated. Moderate Ratings - Effectiveness
  9. 9. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 9 Immediate outcome of an effective system to combat money laundering (ML) and terrorist financing (TF) Extent to which Belgium has achieved this objective 9. Terrorist financing offences and activities are investigated and persons who finance terrorism are prosecuted and subject to effective, proportionate and dissuasive sanctions. Substantial 10. Terrorists, terrorist organisations and terrorist financiers are prevented from raising, moving and using funds, and from abusing the non-profit sector. Moderate 11. Persons and entities involved in the proliferation of weapons of mass destruction are prevented from raising, moving and using funds, consistent with the relevant United Nations Security Council Resolutions. Moderate Ratings - Effectiveness
  10. 10. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 22-May-15 10 Ratings – Effectiveness 0 4 7 0 High Substantial Moderate Low
  11. 11. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Ratings – technical compliance 22-May-15 11 AML/CFT POLICIES AND COORDINATION 1. Assessing risks & applying a risk-based approach Largely compliant 2. National cooperation and coordination Largely compliant MONEY LAUNDERING AND CONFISCATION 3. Money laundering offence Compliant 4. Confiscation and provisional measures Compliant TERRORIST FINANCING AND FINANCING OF PROLIFERATION 5. Terrorist financing offence Largely compliant 6. Targeted financial sanctions related to terrorism & terrorist financing Partially compliant 7. Targeted financial sanctions related to proliferation Partially compliant 8.Non-profit organisations Partially compliant
  12. 12. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Ratings – technical compliance 22-May-15 12 PREVENTIVE MEASURES 9. Financial institution secrecy laws Compliant Customer due diligence and record keeping 10. Customer due diligence Largely compliant 11. Record keeping Compliant Additional measures for specific customers and activities 12. Politically exposed persons Partially compliant 13. Correspondent banking Partially compliant 14. Money or value transfer services Largely compliant 15. New technologies Largely compliant 16. Wire transfers Partially compliant
  13. 13. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Ratings – technical compliance 22-May-15 13 PREVENTIVE MEASURES (continued) Reliance, Controls and Financial Groups 17. Reliance on third parties Partially compliant 18. Internal controls and foreign branches and subsidiaries Partially compliant 19. Higher-risk countries Largely compliant Reporting of suspicious transactions 20. Reporting of suspicious transactions Compliant 21. Tipping-off and confidentiality Compliant Designated non-financial Businesses and Professions (DNFBPs) 22. DNFBPs: Customer due diligence Largely compliant 23. DNFBPs: Other measures Largely compliant
  14. 14. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 22-May-15 14 TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS AND ARRANGEMENTS 24. Transparency and beneficial ownership of legal persons Largely compliant 25. Transparency and beneficial ownership of legal arrangements Largely compliant POWERS AND RESPONSIBILITIES OF COMPETENT AUTHORITIES AND OTHER INSTITUTIONAL MEASURES Regulation and Supervision 26. Regulation and supervision of financial institutions Partially compliant 27. Powers of supervisors Largely compliant 28. Regulation and supervision of DNFBPs Partially compliant Operational and Law Enforcement 29. Financial intelligence units Compliant 30. Responsibilities of law enforcement and investigative authorities Compliant 31. Powers of law enforcement and investigative authorities Compliant 32. Cash couriers Compliant Ratings – technical compliance
  15. 15. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 22-May-15 15 TRANSPARENCY AND BENEFICIAL OWNERSHIP OF LEGAL PERSONS AND ARRANGEMENTS (continued) General Requirements 33. Statistics Partially compliant 34. Guidance and feedback Largely compliant Sanctions 35. Sanctions Largely compliant INTERNATIONAL COOPERATION 36. International instruments Compliant 37. Mutual legal assistance Largely compliant 38. Mutual legal assistance: freezing and confiscation Largely compliant 39. Extradition Largely compliant 40. Other forms of international cooperation Largely compliant Ratings – technical compliance
  16. 16. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 22-May-15 16 Ratings – technical compliance 11 18 11 0 Compliant Largely compliant Partially compliant Non-compliant
  17. 17. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Priority Actions for Belgium to strengthen its AML/CFT System  Absence of AML/CFT priorities Based on national risk assessments, competent authorities should – set priorities in ML/TF actions – relay priorities and recommendations to policy makers to define AML/CFT policy that will cover everything, from prevention to suppression of money laundering and terrorist financing 22-May-15 17
  18. 18. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Priority Actions for Belgium to strengthen its AML/CFT System  Lack of judicial resources – Belgium must address the lack of human and technological resources that exists at every level, to different degrees. • Lack of resources has an impact on detection, prosecution and sanction of money laundering. – Belgium needs a concrete and co-ordinated strategy for the criminal prosecution of money laundering. 22-May-15 18
  19. 19. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Priority Actions for Belgium to strengthen its AML/CFT System  Supervision based on ML/TF risks AML/CFT control authorities should: – adapt the scope, frequency and intensity of supervision according to the nature of the risks – implement on-site inspections that adequately correspond to the risks – allocate appropriate resources to supervision based on the nature and level of ML/TF risks facing the various sectors 22-May-15 19
  20. 20. Anti-money laundering and counter-terrorist financing measures in Belgium – Mutual Evaluation Report – April 2015 Priority Actions for Belgium to strengthen its AML/CFT System  Dialogue and communication Competent authorities should emphasise dialogue and communication with the entities concerned on • the ML/TF obligations applicable to them • what is required of them in terms of suspicious transaction reporting • the results of AML/CFT supervisory actions 22-May-15 20

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