Belgian Banks Increase Scrutiny of Clients’ Funds in Battle Against Money Laundering

Belgian banks are increasingly scrutinizing the source of their clients’ funds, even if the money has been in their accounts for many years. The banks are taking proactive steps to ensure that the money is not linked to any criminal activities.

In some cases, banks are requesting evidence of the origin of funds dating back over thirty years. However, providing such historical evidence can be challenging as documentation may no longer be available. Tax lawyer Paul Verhaeghe explains that bank statements, for example, are typically only required to be kept for 10 years, making it difficult to provide evidence from decades ago.

To combat money laundering, banks are reporting suspicious transactions to the Financial Intelligence Processing Unit (CFI). The number of reported transactions has been on the rise, with 40,129 reports in 2023. The CFI then conducts further investigations and may alert the public prosecutor of any suspicious activities.

In 2023, a total of 1,316 cases were reported to the public prosecutor involving a total of 2.4 billion euros. While investigations are ongoing, the funds in question remain frozen. This heightened scrutiny aims to ensure that all financial activities comply with legal regulations and do not support illegal activities.

The increase in bank reporting of suspicious transactions highlights a growing concern among Belgians about financial crime and its impact on their lives. Many citizens feel that they are being unfairly targeted by banks and law enforcement agencies when they have done nothing wrong.

Despite these concerns, experts say that increased scrutiny is necessary to combat money laundering and prevent financial crime from spreading throughout society. They argue that individuals who engage in illegal activities should be held accountable and face serious consequences.

In conclusion, Belgian banks are taking a proactive approach to combat money laundering by increasing their reporting of suspicious transactions to the Financial Intelligence Processing Unit (CFI). While this increased scrutiny may cause inconvenience for some individuals and businesses, it is necessary for ensuring compliance with legal regulations and preventing financial crime from spreading throughout society.