|
|
Sanctions:
As a member of the EU, the country is party to all EU Sanctions
as well as UN sanctions.
____________________________________________________
Offshore Jurisdiction Blacklists:
A 2003 Belgian Royal Decree blacklisted about 35 low-tax
jurisdictions (most of those listed on initial OECD list).
____________________________________________________
US State Department Money Laundering Report - 2011
Belgium’s banking industry is of medium size, with assets of over
$2 trillion dollars in 2010. Illicit funds, formerly consisting mostly of
narcotics trafficking proceeds, now derive mainly from serious
forms of financial crime, including tax crime. Authorities note that
criminals are increasing their use of remittance transactions and
shell companies, and are abusing non-financial sectors, in
particular lawyers, real estate and nonprofit organizations to
launder money. In 2010, the Belgian financial intelligence unit also
noted an increase in money laundering via “money mules” and
internet scams as well as an increase in the number of cases
involving fraud through the European carbon market. The Belgian
diamond industry also has been used to launder money.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, estate agents, private security firms,
funds transporters, diamond merchants, notaries, bailiffs,
auditors, chartered accountants, tax advisors, certified
accountants, surveyors, lawyers and casinos
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, estate agents, private security firms,
funds transporters, diamond merchants, notaries, bailiffs,
auditors, chartered accountants, tax advisors, certified
accountants, surveyors, lawyers and casinos
Number of STRs received and time frame: 17,170 for 2009
Number of CTRs received and time frame: 9,973 for 2009
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 60 in 2009
Convictions: 39 in 2009
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Belgium is a member of the Financial Action Task Force (FATF).
Its most recent mutual evaluation can be found here: http://www.
fatf-gafi.org/dataoecd/40/39/42761756.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Belgium permits bearer shares for individuals as well as for banks
and companies.
Belgian authorities are working to address implementation issues
in two sectors, phone shops and the diamond industry. Phone
shops allow customers to make inexpensive phone calls and
access the internet. Only a quarter of approximately 3,000 phone
shops are formally licensed, and raids on these shops have
uncovered evidence of money laundering operations. Authorities
report challenges for officials trying to collect tax revenues and
police money laundering operations, because phone shops often
declare bankruptcy and later reopen under new management.
Belgian authorities recognize the particular importance and
special challenges for law enforcement of the diamond industry,
as well as the potential vulnerabilities it presents to the financial
sector, as 80 percent of the world’s rough diamonds and 50
percent of polished diamonds pass through Belgium. Authorities
have transmitted a number of cases relating to diamonds to the
public prosecutor.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
With a major world port at Antwerp, an airport with connections
throughout Africa, and its proximity to major consumers in the
United Kingdom (U.K.) and The Netherlands, Belgium has
become a crucial transit point for a variety of illegal drugs,
especially cocaine and heroin. Belgium is not a major market for
illicit drugs. Methods of shipment vary, but most drugs seized
have been found in cargo freight, or taken from couriers using air
transportation.
Belgian authorities take a proactive approach to interdicting drug
shipments and cooperate with the U.S. and other foreign
countries to help uncover distribution rings. However, fighting the
drug trafficking problem in Belgium can be difficult due to the
large ethnic population centers, language, and cultural
differences and the cross-border nature of trafficking. Belgium is
a party to the 1988 UN Drug Convention, and is a member of the
Dublin Group of countries concerned with combating narcotics
trafficking.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
Belgium is a source, destination, and transit country for men,
women, and children subjected to forced labor and sex trafficking.
Victims originate in Eastern Europe, Africa, East Asia, as well as
Brazil and India. Some victims are smuggled through Belgium to
other European countries, where they are subsequently subjected
to forced labor and sex trafficking. Male victims are subjected to
forced labor in restaurants, bars, sweatshops, horticulture sites,
fruit farms, construction sites, and retail shops. Belgian girls are
seduced by local pimps and then subjected to sex trafficking
within the country. Furthermore, the government reported that
foreign children, including ethnic Roma, are subjected to sex
trafficking within more hidden forms of prostitution. Forced
begging within the Roma community in Belgium also occurs.
Foreign workers continued to be subjected to forced domestic
service, some involving members of the international diplomatic
community assigned to Belgium.
The Government of Belgium fully complies with the minimum
standards for the elimination of trafficking. The government
proactively investigated and prosecuted sex trafficking offenders
during the reporting period; however, the government reported
that it did not vigorously pursue forced labor cases. The
government funded three NGOs providing comprehensive
protection and assistance to victims, but identified very few child
trafficking victims, despite reports of a significant number of
children in prostitution in the country. The Belgian government
continued to serve as a leader in the region for its efforts to
monitor and prevent domestic servitude within Belgium’s
diplomatic community. The government’s Centre for Equal
Opportunity and Opposition to Racism served as a de facto
rapporteur and continued to publish a comprehensive self-critical
annual report to improve the government’s anti-trafficking efforts
in 2010.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Overview: Belgium’s government remained vigilant in its
counterterrorism efforts. The Ministers of Interior and Justice
oversee a capable but understaffed federal police corps, state
security service, threat analysis unit, and federal prosecutor’s
office. Belgian courts set a high standard for prosecutors to prove
a suspect is a terrorist. Terrorism investigations were often long,
requiring several months to more than a year before a case can
be built that leads to arrests.
Legislation and Law Enforcement: Belgium instituted
enhancements to airline passenger screening in December 2009.
Air cargo screening enhancements were adopted in summer
2010. A law that allows Belgium’s security services to use new
investigative techniques against suspects in terrorism and
national security cases came into effect in September 2010.
Seven defendants in an ongoing terrorism case, including Malika
El-Aroud (the so-called “Internet jihadist”) were convicted in May
under Belgium’s 2005 terrorism law. This was the first successful
prosecution under the law. Nine suspected terrorists were
detained on November 23 and were held in custody through the
end of the year. Seven of the nine, plus an additional suspect
detained later, were arrested in Antwerp; they were accused of
membership in the Caucasus Emirate, a terrorist organization that
seeks to create an emirate in the northern Caucasus. Two
suspects were detained in Brussels for financing and recruiting in
Iraq and Afghanistan.
The Belgian government continued to work with the U.S.
government on the extradition to the United States of convicted
terrorist Nizar Trabelsi, who had not yet exhausted his appeal
options on the extradition request.
Countering Terrorist Finance: Belgium led the effort in late 2009
to find a solution that would allow EU countries to continue to
freeze terrorist assets under UNSCR 1267 after European court
cases ruled there must be a workable means for a person to
contest his or her listing and be delisted, if appropriate. Belgium
also hosted meetings to respond to the European Court’s 2010
ruling that UNSCR 1904 did not go far enough in allowing those
listed to contest a listing. Belgium is a member of the Financial
Action Task Force.
Regional and International Cooperation: Belgium chaired the EU’s
counterterrorism working group during Belgium’s Rotating
Presidency of the European Council from July 1 to December 31.
Belgium voted in favor of UNSCR 1904.
Countering Radicalization and Violent Extremism: Belgium’s
Ministry of Interior began developing its own Countering Violent
Extremism (CVE) strategy in 2010. The Belgian Federal Police
distributed a Community Policing Preventing Radicalism and
Terrorism guide to assist local police to recognize the signs of
radicalization. The Belgian police worked on this guide for several
years with seven other EU member states.
Belgium held two CVE seminars in September and October during
its rotating EU presidency. Participants, including representatives
of the U.S. Department of Homeland Security, the State
Department, and the National Counterterrorism Center, discussed
approaches governments can take to recognize and counteract
violent extremism.
As a member of the EU, the country is party to all EU Sanctions
as well as UN sanctions.
____________________________________________________
Offshore Jurisdiction Blacklists:
A 2003 Belgian Royal Decree blacklisted about 35 low-tax
jurisdictions (most of those listed on initial OECD list).
____________________________________________________
US State Department Money Laundering Report - 2011
Belgium’s banking industry is of medium size, with assets of over
$2 trillion dollars in 2010. Illicit funds, formerly consisting mostly of
narcotics trafficking proceeds, now derive mainly from serious
forms of financial crime, including tax crime. Authorities note that
criminals are increasing their use of remittance transactions and
shell companies, and are abusing non-financial sectors, in
particular lawyers, real estate and nonprofit organizations to
launder money. In 2010, the Belgian financial intelligence unit also
noted an increase in money laundering via “money mules” and
internet scams as well as an increase in the number of cases
involving fraud through the European carbon market. The Belgian
diamond industry also has been used to launder money.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, estate agents, private security firms,
funds transporters, diamond merchants, notaries, bailiffs,
auditors, chartered accountants, tax advisors, certified
accountants, surveyors, lawyers and casinos
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, estate agents, private security firms,
funds transporters, diamond merchants, notaries, bailiffs,
auditors, chartered accountants, tax advisors, certified
accountants, surveyors, lawyers and casinos
Number of STRs received and time frame: 17,170 for 2009
Number of CTRs received and time frame: 9,973 for 2009
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 60 in 2009
Convictions: 39 in 2009
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Belgium is a member of the Financial Action Task Force (FATF).
Its most recent mutual evaluation can be found here: http://www.
fatf-gafi.org/dataoecd/40/39/42761756.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Belgium permits bearer shares for individuals as well as for banks
and companies.
Belgian authorities are working to address implementation issues
in two sectors, phone shops and the diamond industry. Phone
shops allow customers to make inexpensive phone calls and
access the internet. Only a quarter of approximately 3,000 phone
shops are formally licensed, and raids on these shops have
uncovered evidence of money laundering operations. Authorities
report challenges for officials trying to collect tax revenues and
police money laundering operations, because phone shops often
declare bankruptcy and later reopen under new management.
Belgian authorities recognize the particular importance and
special challenges for law enforcement of the diamond industry,
as well as the potential vulnerabilities it presents to the financial
sector, as 80 percent of the world’s rough diamonds and 50
percent of polished diamonds pass through Belgium. Authorities
have transmitted a number of cases relating to diamonds to the
public prosecutor.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
With a major world port at Antwerp, an airport with connections
throughout Africa, and its proximity to major consumers in the
United Kingdom (U.K.) and The Netherlands, Belgium has
become a crucial transit point for a variety of illegal drugs,
especially cocaine and heroin. Belgium is not a major market for
illicit drugs. Methods of shipment vary, but most drugs seized
have been found in cargo freight, or taken from couriers using air
transportation.
Belgian authorities take a proactive approach to interdicting drug
shipments and cooperate with the U.S. and other foreign
countries to help uncover distribution rings. However, fighting the
drug trafficking problem in Belgium can be difficult due to the
large ethnic population centers, language, and cultural
differences and the cross-border nature of trafficking. Belgium is
a party to the 1988 UN Drug Convention, and is a member of the
Dublin Group of countries concerned with combating narcotics
trafficking.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
Belgium is a source, destination, and transit country for men,
women, and children subjected to forced labor and sex trafficking.
Victims originate in Eastern Europe, Africa, East Asia, as well as
Brazil and India. Some victims are smuggled through Belgium to
other European countries, where they are subsequently subjected
to forced labor and sex trafficking. Male victims are subjected to
forced labor in restaurants, bars, sweatshops, horticulture sites,
fruit farms, construction sites, and retail shops. Belgian girls are
seduced by local pimps and then subjected to sex trafficking
within the country. Furthermore, the government reported that
foreign children, including ethnic Roma, are subjected to sex
trafficking within more hidden forms of prostitution. Forced
begging within the Roma community in Belgium also occurs.
Foreign workers continued to be subjected to forced domestic
service, some involving members of the international diplomatic
community assigned to Belgium.
The Government of Belgium fully complies with the minimum
standards for the elimination of trafficking. The government
proactively investigated and prosecuted sex trafficking offenders
during the reporting period; however, the government reported
that it did not vigorously pursue forced labor cases. The
government funded three NGOs providing comprehensive
protection and assistance to victims, but identified very few child
trafficking victims, despite reports of a significant number of
children in prostitution in the country. The Belgian government
continued to serve as a leader in the region for its efforts to
monitor and prevent domestic servitude within Belgium’s
diplomatic community. The government’s Centre for Equal
Opportunity and Opposition to Racism served as a de facto
rapporteur and continued to publish a comprehensive self-critical
annual report to improve the government’s anti-trafficking efforts
in 2010.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Overview: Belgium’s government remained vigilant in its
counterterrorism efforts. The Ministers of Interior and Justice
oversee a capable but understaffed federal police corps, state
security service, threat analysis unit, and federal prosecutor’s
office. Belgian courts set a high standard for prosecutors to prove
a suspect is a terrorist. Terrorism investigations were often long,
requiring several months to more than a year before a case can
be built that leads to arrests.
Legislation and Law Enforcement: Belgium instituted
enhancements to airline passenger screening in December 2009.
Air cargo screening enhancements were adopted in summer
2010. A law that allows Belgium’s security services to use new
investigative techniques against suspects in terrorism and
national security cases came into effect in September 2010.
Seven defendants in an ongoing terrorism case, including Malika
El-Aroud (the so-called “Internet jihadist”) were convicted in May
under Belgium’s 2005 terrorism law. This was the first successful
prosecution under the law. Nine suspected terrorists were
detained on November 23 and were held in custody through the
end of the year. Seven of the nine, plus an additional suspect
detained later, were arrested in Antwerp; they were accused of
membership in the Caucasus Emirate, a terrorist organization that
seeks to create an emirate in the northern Caucasus. Two
suspects were detained in Brussels for financing and recruiting in
Iraq and Afghanistan.
The Belgian government continued to work with the U.S.
government on the extradition to the United States of convicted
terrorist Nizar Trabelsi, who had not yet exhausted his appeal
options on the extradition request.
Countering Terrorist Finance: Belgium led the effort in late 2009
to find a solution that would allow EU countries to continue to
freeze terrorist assets under UNSCR 1267 after European court
cases ruled there must be a workable means for a person to
contest his or her listing and be delisted, if appropriate. Belgium
also hosted meetings to respond to the European Court’s 2010
ruling that UNSCR 1904 did not go far enough in allowing those
listed to contest a listing. Belgium is a member of the Financial
Action Task Force.
Regional and International Cooperation: Belgium chaired the EU’s
counterterrorism working group during Belgium’s Rotating
Presidency of the European Council from July 1 to December 31.
Belgium voted in favor of UNSCR 1904.
Countering Radicalization and Violent Extremism: Belgium’s
Ministry of Interior began developing its own Countering Violent
Extremism (CVE) strategy in 2010. The Belgian Federal Police
distributed a Community Policing Preventing Radicalism and
Terrorism guide to assist local police to recognize the signs of
radicalization. The Belgian police worked on this guide for several
years with seven other EU member states.
Belgium held two CVE seminars in September and October during
its rotating EU presidency. Participants, including representatives
of the U.S. Department of Homeland Security, the State
Department, and the National Counterterrorism Center, discussed
approaches governments can take to recognize and counteract
violent extremism.
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| BELGIUM |
| KnowYourCountry |
|
__________________________________________________
AML News / Updates
May 1, 2011 - New report by the Global Forum on Transparency and
Exchange of Information to evaluate the country's legal and regulatory
frameworks for re exchange of information is made available.
Read Report....
Links:
Worldwide AML Legislation (International Bar Association)
Financial Information Processing Unit
AML News / Updates
May 1, 2011 - New report by the Global Forum on Transparency and
Exchange of Information to evaluate the country's legal and regulatory
frameworks for re exchange of information is made available.
Read Report....
Links:
Worldwide AML Legislation (International Bar Association)
Financial Information Processing Unit
|
| Last Updated: 16 April 2012 |