Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

African diplomats can’t open bank accounts in Brussels — and Qatar scandal could make things tougher

African diplomats can’t open bank accounts in Brussels — and Qatar scandal could make things tougher

‘Embassies are paralyzed,’ says Cameroon’s ambassador.

Dirty finance, corruption and money laundering are at the heart of the Qatari influence scandal that's shaking Brussels to its core.

But according to African and Caribbean officials stationed in the EU capital, Belgium's overzealous application of financial rules designed to stamp out this kind of criminality has left diplomats from some 15 to 20 countries unable to open bank accounts that they need to perform their basic diplomatic roles.

The Organisation of African, Caribbean and Pacific States (OACPS) spoke out in June, stressing that the closure of bank accounts "causes enormous difficulties that affect the proper functioning of the diplomatic missions concerned" and warning that the freezing of their accounts is causing them "reputational damage."

The OACPS has demanded responses from banks, the Belgian government and the European External Action Service since 2021 but struggled with buck-passing between the institutions, third-country diplomats and Belgian officials told POLITICO. Embassies of countries including Cameroon, Mozambique, Djibouti, Trinidad and Tobago, Ghana, Kenya, the Central African Republic and Cabo Verde have been affected, according to a partial list seen by POLITICO.

The crux of the matter is a 2015 EU directive against money laundering and financing terrorism that Belgium has passed into law.

The stringent rules force banks to know why an account is being opened, who it's for and what type of transactions take place. Under these tougher requirements, banks are expected to act as a net to catch dodgy transactions. Banks also have to take more mitigating measures if money laundering risks are higher, for example with politically prominent persons — like an MEP — or if an account is linked to certain countries or regions in the world.

This means banks have to gather more data and check more information before taking up a client like an embassy or a diplomat, said Febelfin, an organization that represents Belgium’s financial sector.

The OACPS added that its members are committed "at the highest political level to combat illicit financing flows" and added that it is Belgium’s obligation to ensure the smooth functioning of diplomatic missions in Brussels. The group has established a working party to deal with the issue, which is being led by Cameroon.

"These embassies are paralyzed, they can't function normally," said Daniel Evina Abe’e, Cameroon's ambassador to the EU and Belgium. "It's difficult to function, to pay the personnel, you have to pay the suppliers, you have to pay the phones — if you don't have money, it's a way to ask you to close altogether."

It's not just OACPS nations that are affected, Abe'e said: Peru has had similar problems with its diplomats in Belgium, he said.

POLITICO contacted the four major Belgian banks, which stressed they apply a case-by-case analysis for diplomats and embassies. 

ING, for example, "does not have a policy of systematically refusing institutions such as embassies as customers," according to a spokesperson, who pointed out that the strict regulation "in the case of embassies and diplomats requires great efforts."

The Belgian ministry of foreign affairs has been putting pressure on the financial sector to facilitate banking services for foreign diplomatic services. This led Febelfin to issue new guidelines on providing banking services to embassies. But these were non-binding, and the feeling diplomats and embassies got from the banks still seems to be: better safe than sorry.

Now, a new law is supposed to change that.

Qatargate


From early next year, banks will be required by law to provide basic banking services and thus provide relief for diplomats, but also for diamond traders and others who have struggled to get bank accounts.

If a diplomat is refused three times, they can appeal that decision and get designated a credit institution in Belgium to offer basic banking services. These banking services would at least make it possible to perform simple transactions, such as direct debits, transactions via payment instruments, cash deposits and transfers.

It would be possible to lodge such an appeal as of February, said a spokesperson for Belgian Economy Minister Pierre-Yves Dermagne.

The lack of banking services has become such a problem that a wide range of non-EU countries has pushed Belgium and the EU to find a fix, which is now in the works. But the cash-for-influence allegations against the Gulf state aren’t likely to make things easier for diplomats entering a Belgian bank.




The question remains how much more vigilant banks will be after prosecutors in Belgium seized €1.5 million in the investigation into alleged attempts by Qatar and Morocco to buy political influence at the heart of the EU.

"It will have an impact. That's for sure," said Abe'e, the ambassador for Cameroon. He added that some embassies have been forced to use cash, having been frozen out of their accounts.

For Febelfin, the scandal shows how "risk factors imposed by law are not merely theoretical,” said Isabelle Marchand, the group's director of European affairs. “Such cases show that the risks do not exist only on paper and that increased vigilance does have a goal and a function for society, i.e. the fight against money laundering.”

Febelfin declined to discuss individual cases in detail, but stressed that the European directive and Belgian law indicate there are risks of corruption and money laundering with bank accounts for a "politically prominent person" or a "politically exposed person," which does indeed require "increased vigilance."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
×