The applicability of the 'preventive aspects' of the anti-money laundering legislation (Act of 11 January 1993 on Preventing Use of the Financial System for Money Laundering) have been expanded by the Belgian legislature to include attorneys. The text was published in the Belgian Bulletin of Acts and Decrees (Act of 12 January 2004, B.S. 23 January 2004) and took effect on 2 February 2004.

Attorneys are only obliged, however, to observe the preventive aspects of the anti-money laundering legislation if they act in the name or for the account of their client in any financial or property-related activity (purchasing or selling property or businesses, management of money, negotiable instruments or other assets, contributions made in the context of incorporation of companies and so forth).

 

Reporting
Suspicious transactions must be reported to the Head of the Bar Association, who, in turn, transmits the information to the Cel voor Financiële Informatieverwerking [Belgian Financial Task Force]. There is one major exception to this basic reporting obligation, i.e. if the situation concerned involves advice regarding or assistance in potential or pending legal proceedings.

 

Administrative obligations
An identification obligation has been created: an attorney working on the transactions described above for a new client must ascertain the client's identity with supporting documents. In addition, continuous vigilance must be exercised throughout the relationship with the client. With respect to existing client relationships, identification must be made within one year after the aforementioned provisions have taken effect. In all the situations mentioned above, the attorney and the Head of the Bar Association are prohibited from disclosing to the client or a third party that the information was reported or that an investigation is pending.