Training and education of staff

Statutory and regulatory framework

Comments and recommendations by the NBB

The effectiveness of the AML/CFTP policy of financial institutions depends largely on the ability of their staff and representatives to contribute to its implementation. This ability depends in turn on their technical knowledge and awareness of the critical need to prevent ML/FT transactions, both of which are the responsibility of the AMLCO (see the Governance page).

1. Education

The AMLCO should educate the financial institution’s staff about the ML/FT risks to which it is exposed, taking into account the broader national and international environment in which it operates, and why it is necessary to reduce these risks.  Education thus consists of disseminating general AML/CFTP information to all staff members. This information can take various forms: company letters, intranet publications, meetings, etc. Through this process, staff are and will remain informed of the ML/FT risks, including methods, trends and typologies, as well as the risk-based approach implemented by the financial institution to reduce and manage these risks.

2. Training

In addition to general education, the AMLCO should ensure that (theoretical and practical) AML/CFTP training is provided to guarantee that the persons concerned by AML/CFTP risks are effectively able to implement the AML/CFTP measures in effect within the financial institution. The NBB recommends that, insofar as possible, this training be provided by the AMLCO or members of the latter’s team, where appropriate, in cooperation with the department in charge of staff training. Nevertheless, if this task is outsourced to a third party, the AMLCO should ensure that (i) the subcontractor has the required AML/CFTP knowledge to guarantee the quality of the training to be provided, (ii) the management conditions of the outsourcing are set and respected, and (iii) the content of the training is adapted to the specific features of the financial institution concerned and the field experience of the institution’s AMLCO is properly reflected in the training (see below).

If the financial institution implements an awareness or training programme developed abroad, e.g. by its head office or parent company, the AMLCO should ensure that this programme is adapted to the statutory and regulatory provisions applicable in Belgium and to the institution’s ML/FT typologies and specific activities.

As regards the ratione personae scope, training should be provided to all staff (regardless of their status) of the financial institution who are concerned by ML/FT risks, as well as its independent agents (not brokers) and, if the financial institution is an electronic money institution, its distributors. 

The training procedures should be adapted to the financial institution's organisation and take account of its nature and size, as well as its ML/FT risk profile.

The subject matter of the training to be provided must be proportionate to the ML/FT risks to which the persons to whom it is provided may be exposed. A distinction can be made in this respect between:

  • persons working for the compliance function under the responsibility of the AMLCO: training should be thorough and cover all AML/CFTP aspects, thus enabling the financial institution to comply with all its AML/CFTP obligations;
  • persons in contact with customers or tasked with carrying out their transactions (employees, agents and distributors): training should enable them to detect atypical transactions effectively and to alert the AMLCO as soon as possible in accordance with internal procedures; 
  • persons responsible for developing procedures or software or other tools applicable to activities that are sensitive to ML/FT risks: training must enable them to adequately integrate AML/CFTP issues.

The training programme may include several sessions which, in accordance with the Anti-Money Laundering Law, should be defined taking into account the tasks performed by the persons concerned and their exposure to ML/FT risks. In general, however, the NBB recommends that all training sessions cover the following aspects:

  1. all Belgian statutory and regulatory AML/CFTP obligations applicable to financial institutions (overall risk assessment and risk classification, individual risk assessment, due diligence requirements, detection and analysis of atypical transactions, reporting of suspicions, embargoes, freezing of assets, electronic transfers of funds, etc.);
  2. the financial institution’s internal organisation, i.e. the risk-based approach and the policies, procedures, implementation processes of the institution and the existence of an internal reporting procedure ("internal whistleblowing");
  3. the experience acquired within the institution and, in particular, the cases of atypical transactions previously identified;
  4. recent developments with regard to ML/FT risks in practice (typologies, risk factors, etc.);
  5. the NBB reporting procedure ("external whistleblowing"); see the third subparagraph of Article 11 §1 of the Anti-Money Laundering Law.

The NBB also reminds financial institutions that training should be updated in light of any changes to the statutory and regulatory provisions and, more generally, changes affecting the AML/CFTP organisation.

As regards the frequency of training, it should be provided both when new staff are recruited (short-term training after entry into service) and on an ongoing basis whenever updating is necessary, in particular as a result of changes in the identified risks or in the organisation of the financial institution.

The NBB also recommends setting up a system for monitoring training and verifying the proper understanding of the substance thereof by the staff concerned. To this end, the staff concerned can be asked to take a test after undergoing training. The financial institution should also be able to evidence to the NBB the training sessions given to staff concerned by ML/FT risks, as well as agents and distributors.

Disclaimer: This English text is an unofficial translation and may not be used as a basis for resolving any dispute.