Anti-money laundering: verifying your business partners
Anti-money laundering regulations impose due diligence obligations. Discover how to use BCE/KBO data for your KYC/KYB checks.
In brief
Belgian AML regulations (Act of 18 September 2017) require regulated professions to rigorously verify their business partners through the KYB process (Know Your Business): legal existence, BCE status, ownership structure and NACE activity consistency. Company Belgium's BCE/KBO API automates these checks and produces a documentary trace valid during inspections.
Anti-money laundering regulations in Belgium
The Act of 18 September 2017 transposes the 4th European anti-money laundering directive into Belgian law. It imposes strict obligations on obliged entities: banks, accountants, lawyers, notaries, real estate agents, etc. For a full analysis of its 5 cardinal obligations, see our Belgian AML compliance guide.
Due diligence obligations (KYC/KYB)
Know Your Customer (KYC)
Client identification is the first step. See our detailed guide on KYC in Belgium: identifying and verifying clients for the documents to collect and the UBO cascade:
Know Your Business (KYB)
For corporate clients, additional checks are required:
- Verify the legal existence of the company
- Confirm the BCE number and status (active/struck off)
- Identify the ownership structure
- Verify the declared activities (NACE codes)
How our API facilitates compliance
Our API provides:
- Instant verification of company status
- Access to all relevant BCE/KBO data for KYB
- Detection of red flags (struck-off companies, frequent name changes)
For deeper detection, see our guide on transaction monitoring and suspicious transaction detection.
Penalties for non-compliance
- Administrative fines up to €1,250,000
- Publication of the sanction (name and shame)
- Criminal penalties for the most serious cases
See our guide on AML non-compliance sanctions in Belgium for recent cases and amounts.
Conclusion
The BCE/KBO API is an essential tool in your anti-money laundering framework. It allows you to automate KYB checks and document your due diligence.
Frequently asked questions
What is the difference between KYC and KYB under Belgian AML regulations?
KYC (Know Your Customer) concerns the identification and verification of an individual client: name, date of birth, address, nationality, identity document. KYB (Know Your Business) applies to corporate clients and adds further checks: legal existence in the BCE, legal form, legal representatives, ownership structure and UBO identification (ultimate beneficial owner). In Belgium, both processes are covered by the Act of 18 September 2017 and must be documented to withstand an inspection.
Which BCE/KBO red flags should be monitored in an AML KYB process in Belgium?
Four main signals should trigger alert during a KYB check via the BCE: a company with struck-off or in-liquidation status (risk that transactions are conducted in its name without legal basis); a registered office address exclusively at a PO Box with no physical address; frequent changes of company name over a short period; and an inconsistency between declared NACE codes (official activities) and the actual nature of transactions carried out. Each of these signals should trigger an in-depth analysis or a suspicious transaction report to the CTIF/CFI.
How does Company Belgium's BCE/KBO API help automate AML checks?
The Company Belgium API retrieves in a single request the active or struck-off status of a Belgian company, its legal representatives and their history, its NACE codes and evolution, its successive registered office addresses, and its past and current denominations. This data, automatically timestamped and archived, constitutes the documentary trace required during an AML inspection. Continuous monitoring via BCE alerts also enables real-time detection of any critical change at a client or partner.
How long must the results of KYB checks performed for AML purposes be retained in Belgium?
The Belgian Act of 18 September 2017 requires retention of all identification and verification documents for 10 years after the end of the commercial relationship or the last transaction. This includes BCE extracts, UBO verification results, risk assessment reports and all correspondence related to the file. The format may be electronic provided documents are timestamped and access is traced. The Company Belgium platform handles this archiving automatically.
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