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.

Belgium has robust anti-bribery laws that criminalize both active and passive bribery, applicable to both Belgian and foreign nationals, and is a signatory to the OECD Anti-Bribery Convention. While corruption is considered rare and not a barrier to business, enforcement is shared between the Ministry of Justice and the Ministry of the Interior, with a special unit dedicated to combating corruption, though it faces staffing challenges. Recent trends indicate that corruption is most prevalent in government procurement and public works, yet U.S. firms have not identified it as an obstacle to foreign direct investment.

Belgium has a highly developed and open economy, characterized by its strategic location as a logistical gateway to Europe and a strong partnership with the United States. The country has implemented measures to enhance its economic competitiveness, including a reduction in corporate tax rates and a focus on attracting foreign investment across various sectors such as chemicals, pharmaceuticals, and technology. Despite steady economic growth of 1.5% in 2023, challenges such as labor shortages and rising public debt remain significant concerns.

Belgium offers a competitive investment climate characterized by a well-educated workforce and strong infrastructure, making it an attractive destination for U.S. investors. The government has made significant efforts to enhance economic competitiveness, including reducing the corporate tax rate from 35% to 25% and implementing a minimum tax for multinational corporations. Additionally, Belgium's dynamic economy attracts substantial foreign direct investment across various sectors, including chemicals, health technologies, and information technology.