Belgium AML Obligations for Accountants: The Law of 18 September 2017 and CTIF-CFI

Belgium's main anti-money laundering (AML) statute is the Law of 18 September 2017 on the prevention of money laundering and terrorist financing and on the restriction of the use of cash. It covers company auditors, external chartered accountants and external tax advisers, and the Belgian financial intelligence unit, CTIF-CFI, receives suspicious transaction reports. This guide draws on CTIF-CFI's published description of the obligations and an unofficial English translation of the Law dated May 2019, and it is open about what we could not read. It is general information, not legal advice.

Who is covered

In the English translation we read, article 5 §1, 23° covers auditors: natural or legal persons registered with the Institute of Company Auditors, including audit firms and persons exercising the profession of statutory auditor. Article 5 §1, 25° covers accountants and tax advisers on the list of external chartered accountants and the list of external tax consultants, together with trainees on those lists. The translation skipped from 23° to 25° in the extract available to us, so the provisions for other professions in between were not visible.

Risk assessment and internal controls

CTIF-CFI says obliged entities must adopt policies, procedures and internal controls proportionate to their nature and size, appoint one or more individuals to implement them, train staff, and designate an AML compliance officer under article 9. Each customer's risk assessment must draw on the entity's own overall risk assessment, the European Union's supranational risk assessment, Belgium's national risk assessments and the risk factors in the annexes to the Law. Higher risk calls for enhanced due diligence and low risk may allow simplified due diligence.

Customer due diligence

According to CTIF-CFI, entities must identify and verify customers, their agents and their beneficial owners, assess the customer's characteristics and the purpose of the relationship, and keep information up to date through ongoing due diligence. Verification comes before the relationship starts or an occasional transaction is carried out. The thresholds CTIF-CFI lists include 10,000 euros for linked occasional transactions, and any amount where cash or anonymous electronic money is received. If due diligence cannot be completed, the entity must not establish the relationship or carry out the transaction, must end any existing relationship, and must consider whether to notify CTIF-CFI.

Enhanced due diligence applies to politically exposed persons, with senior management approval, source of wealth and funds checks and enhanced scrutiny, and CTIF-CFI says that status continues for at least 12 months after leaving office. It also applies to high-risk third countries and to serious tax fraud risks. For the general method, see our guides to KYC and customer due diligence in accountancy practices and ultimate beneficial ownership.

Suspicious transaction reporting

Under article 47 of the Law, as translated, an obliged entity must report to CTIF-CFI when it knows, suspects or has reasonable grounds to suspect that funds, transactions or facts relate to money laundering or terrorist financing. The duty applies even if the customer decides not to go ahead. CTIF-CFI adds that the predicate offence need not be identified, and that the report should come before the transaction where possible, with any deadline stated. If that is not possible, the entity reports immediately afterwards and explains why. Reports are normally filed by the person designated under article 9 §2, and entities must answer CTIF-CFI's requests for further information within the deadlines it sets. Our guide to suspicious activity reports and tipping off is UK-focused but explains the practical sequence of spotting, escalating and reporting.

CTIF-CFI says auditors, accountants, tax advisers, notaries, bailiffs and lawyers need not pass on information received while assessing a client's legal position or defending or representing them in proceedings. That exemption does not apply if the professional takes part in money laundering, gives legal advice for that purpose, or knows the client is seeking such advice. Good-faith reports do not breach contractual or legal disclosure restrictions or create civil, criminal or disciplinary liability.

Tipping off and record keeping

Article 55 bars telling a customer or third parties that a report has been made or that an analysis is under way. Article 56 sets exceptions, including disclosure to supervisory authorities and certain sharing within groups. Article 60 requires identification data to be kept for ten years after the end of the customer relationship, and transaction records for ten years after the transaction. That is longer than the five years in several other regimes, so firms with clients in more than one country should apply the longest period that applies. The translation we read includes transitional rules that shortened the period for the years 2017 to 2019.

What we could not confirm

• Which authority supervises each profession, because article 85 was not in the text we could read, and CTIF-CFI's supervision page does not name the institutes.
• Administrative fines and criminal penalties, which sit in articles 132 to 135 of the Law and were not visible to us, and CTIF-CFI's page does not describe them.
• Amendments to the Law since May 2019, including changes to the beneficial ownership register rules. CTIF-CFI's page refers to the Law without a consistent date, so check the official text.
• Whether CTIF-CFI requires a particular electronic reporting system for accountants.

Suggested next steps

These are our suggestions, not requirements. Check the consolidated text of the Law at the Belgian official gazette or the central bank's compilation, identify your professional institute's AML guidance, and confirm the penalty provisions. Appoint a named compliance officer. For team training, see our CPD courses.

Frequently asked questions

Are accountants in Belgium covered by AML law?

Yes. In the English translation we read, article 5 covers external chartered accountants and external tax consultants on the professional lists, and company auditors.

How long must records be kept?

Ten years, under article 60: after the end of the customer relationship for identification data, and after the transaction for transaction records.

When should a suspicion be reported?

According to CTIF-CFI, before the transaction where possible, and otherwise immediately afterwards with an explanation of why it was not possible earlier.