Regulatory Alerts2016-12-06
Added · Updated
Horizontal letter: application of financial sanctions regime (Counter terrorism financing)
The National Bank of Belgium identifies shortcomings in financial institutions' procedures for applying financial sanctions and mandates immediate corrective measures. Institutions must systematically screen all new customers, agents, and beneficial owners against sanctions lists without exception, regardless of risk profile, and continuously rescreen existing data following list updates. The regulator requires the freezing of funds and economic resources for any confirmed matches, alongside reporting obligations to the Minister of Finance and the Financial Intelligence Processing Unit where applicable. Furthermore, institutions are expected to implement robust internal policies, staff training, and automated screening systems to ensure compliance with both EU and Belgian sanctions regimes.