Brussels, June 3, 2024 – The Belgian Financial Information Processing Unit (CTIF) reported a staggering 50% increase in money laundering reports in 2023, highlighting the country’s escalating battle against sophisticated laundering schemes tied to drug trafficking.
According to CTIF’s latest annual report, the number of potential money laundering activities reported reached 79,211 last year, driven by suspicious transactions, funds, and information from both foreign counterparts and government departments.
Under the oversight of the Ministers for Justice and Finance, the CTIF acts as an independent authority investigating suspicious activities linked to money laundering and terrorism financing.
Of the total reports received in 2023, 63,753 were new cases, marking a significant 48% rise from the 42,970 new cases recorded in 2022.
CTIF forwards cases with serious money laundering indications to Belgian public prosecutors. The monetary value of suspicious transactions reported to prosecutors also saw a dramatic increase, jumping from €1.62 billion in 2022 to €2.43 billion in 2023, a 50% rise.
As reported by Belga, the increase in money laundering reports can be attributed to two primary factors. Firstly, Belgian banks have become more vigilant in detecting and reporting suspicious activities, with a more than 70% increase in reports filed by banks between 2022 and 2023.
This heightened vigilance is seen as a direct response to growing regulatory pressures and the evolving sophistication of laundering schemes.
Secondly, the surge in reports is linked to the expansion of drug trafficking in Belgium. The burgeoning drug trade has given rise to an increasingly professional money laundering industry.
The CTIF report reveals that the majority of drug trafficking proceeds in Belgium are funneled through these professional laundering networks rather than being handled directly by the traffickers.
The report underscores the challenges faced by CTIF in linking drug traffickers with those running these laundering networks.
The individuals involved typically operate using cash or underground criminal banking networks that bypass the legal financial system, making detection and prosecution difficult.
In his foreword to the annual report, CTIF chairman Philippe de Koster emphasized Belgium’s strategic central location in Europe as a factor in its long-standing struggle with international drug trafficking.
He noted that the problem has intensified in recent years, with 2023 being “particularly marked” by the use of dormant companies in laundering schemes.
“A growing number of cases involve shell companies and individuals who, in exchange for a commission on their ‘money laundering services,’ use their expertise and infrastructure to give criminals’ activities an appearance of legitimacy, while allowing them to remain in the shadows,” de Koster stated.
These “money laundering professionals” employ complex schemes involving a web of companies and bank accounts, along with numerous front men and mules, both domestically and internationally, to obscure the laundering chains at every stage.
In response, authorities have implemented measures such as delisting a significant number of dormant companies from the Crossroads Bank for Businesses to combat the issue.
The sharp increase in money laundering reports underscores the urgent need for continued vigilance and enhanced measures to tackle the evolving threats posed by professional laundering networks and their deepening ties to drug trafficking in Belgium.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
