FATF Status

Belgium is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Belgium was undertaken by the Financial Action Task Force (FATF) in 2018. According to that Evaluation, Belgium was deemed Compliant for 21 and Largely Compliant for 16 of the FATF 40 Recommendations. It was also been deemed Highly Effective for 0 and Substantially Effective for 4 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

US Department of State Money Laundering assessment (INCSR)

Belgium was deemed a Jurisdiction of Primary Concern by the US Department of State 2018 International Narcotics Control Strategy Report (INCSR). The Overview from the report is as follows: -

Belgium’s location and considerable port facilities drive the Belgian economy.  Belgium’s Port of Antwerp (the Port) is the second busiest port in Europe by gross tonnage and, together with the ports of Rotterdam and Hamburg, handles the bulk of European maritime trade.  With this large volume of legitimate trade inevitably comes the trade in illicit goods.  Antwerp is the primary entry point of cocaine into Europe from South American ports.

Belgium is both a destination and a transit country for drugs and is involved in production.  According to the Financial Information Processing Unit (CTIF), Belgium’s FIU, Belgian police services are increasingly investigating drug money laundering activity.  Most of the laundered funds are derived from foreign criminal activity and are heavily associated with the recent explosion in cocaine trafficking at the Port.  While some drug proceeds are transported in bulk to cocaine source countries, some stay in Belgium as payment to the many criminal logistical organizations that move cocaine from containerized cargo at the Port.

Belgium’s FIU remains vigilant to increasingly sophisticated money laundering methods, promoting rigorous analysis and increased cooperation with judicial authorities.  CTIF introduced new analytical mechanisms in 2018 to improve the flow of information, foster cooperation with the federal prosecutor, and enhance partnerships and analysis of STRs

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           73

World Governance Indicator – Control of Corruption             90

Corruption is rare and is not an obstacle for doing business in Belgium. Overall, Belgium has a well-developed legal framework, and the Criminal Code criminalises both public and private bribery, passive and active bribery, and bribery of national and foreign public officials. Facilitation payments are illegal under Belgian law. Gifts and hospitality are permitted only below a certain, undefined threshold, but they do not impede business in the country. Corruption prevention efforts greatly vary between the country's regional governments. The Flemish government has anti-corruption policies that are more developed than the Wallonia government. For further information - GAN Integrity Business Anti-Corruption Portal

Belgium boasts an open market and remains well-connected to the major economies of the world. As a logistical gateway to Europe, host to major EU institutions and NATO, and a central location closely tied to the major European economies, Belgium is a competitive market and location for U.S. investors. Belgium is a highly-developed, long-time economic partner of the United States that benefits from an extremely well-educated workforce, world-renowned research centers, and the infrastructure to support a broad range of economic activities.

Since June 2015, the Belgian government has implemented measures to reduce the tax burden on labor and to increase Belgium’s economic competitiveness and attractiveness to foreign investment.  A July 2017 decision to lower the corporate tax rate from 35% to 25% further improved the investment climate. Belgian Minister of Finance Vincent Van Peteghem announced tentative plans in March 2023 to introduce a new set of tax reforms by January 2024 to further reduce the tax burden on labor; other elements of the plan will likely include implementing a taxation system for equity-based compensation to attract talent in the high technology sector, and creating an environment for sustainable investments and healthy consumption. The specifics, however, have not been agreed upon by the seven-party coalition government. Of note, Belgium will also likely introduce a minimum tax of 15% for multinational corporations with revenue exceeding €750 million ($816 million) on an annual basis by December 31, 2023. This revision would implement an agreement struck in the OECD – and adopted by the European Union – setting a global minimum tax at this rate.

Belgium has a dynamic economy and attracts significant levels of investment in chemicals, petrochemicals, plastics, and composites; environmental technologies; food processing and packaging; health technologies; information and communication; and textiles, apparel and sporting goods, among other sectors.  In 2022, Belgian exports to the U.S. market totaled $32.5 billion, registering the United States as Belgium’s fourth-largest export destination.  Key exports included chemicals and pharmaceutical products (64.0%), machinery and equipment (8.8%), vehicles (7.2%), and precious metals and stones (5.6%). In terms of imports, the United States ranked as Belgium’s fourth-largest supplier of imports, with the value of imported goods totaling $26.0 billion in 2022.  Key imports from the United States included chemicals and pharmaceutical products (43.1%), mineral products (16.2%), and machinery and equipment (10.8%).

According to its most recent report, the Belgian central bank expects the gross domestic product (GDP) growth rate to fall temporarily to 0.6% in 2023. Growth, however, is projected to rebound to 1.7% in 2024 and to 1.8% in 2025 as inflation moderates. The labor market remains strong. Despite the expectation that job creation will slow in the coming months, the unemployment rate is projected to remain comparatively low at 6%. As anticipated, inflation has risen in Belgium and Europe due to mounting energy prices and second-round inflation effects, but in November 2022 it declined in Belgium for the first time since March 2022. Headline inflation should gradually fall, according to Belgian banking experts, from an average of over 10% in 2022 to 1.1% by 2025 as energy prices decline and settle at normal levels. Belgium’s budget deficit reached 5.8% of GDP in 2022, ranking the highest in the eurozone. While some experts forecast the deficit will improve slightly due to the unwinding of temporary COVID-19 and energy support measures, most believe it will remain structurally high, around 5 percent, in 2024 and 2025. Meanwhile, the government’s debt ratio is expected to increase from 105% in 2022 to 112% of GDP by 2025.

Country Links

National Bank of Belgium

Belgian Financial Intelligence Processing Unit (CTIF-CFI)

FSMA | Financial Services and Markets Authority