Two Moroccan banks have reached an out-of-court settlement with Belgium’s Federal Public Prosecutor’s Office, which was investigating a series of illegal activities in Belgium. The Banque Centrale Populaire and the Banque Chaabi Du Maroc, along with three of their directors, will pay a total of more than €175 million.
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Probe into illegal activities in Belgium: Moroccan banks reach €175 million settlement
Colin Clapson
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In October 2020, the Federal Public Prosecutor’s Office carried out several raids on the banks’ branches in the City of Brussels, Molenbeek and Borgerhout (Antwerp) as part of an investigation into, among other things, illegal banking activities, the illegal provision of insurance and the illegal granting of loans. Both Banque Centrale Populaire, its subsidiary Banque Chaabi Du Maroc, and three of their directors were prosecuted and faced charged before the Brussels Criminal Court for offences allegedly committed between 2003 and 2022. However, no conviction was secured.
No admission of guilt
The Federal Public Prosecutor’s Office reached a broad settlement, for a total amount of €175,215,571. “Reaching a settlement offers the advantage of a certain, immediate and definitive response to a crime,” the Federal Public Prosecutor’s Office says. “It does not constitute an admission of guilt by the defendant.”
The court approved the settlement on Monday afternoon, meaning that the prosecution of the banks and their directors will be terminated upon payment of the settlement.
New investigation unit
“This case and this outcome mean the Federal Public Prosecutor and specialist magistrates are clearly demonstrating the importance they attach to tackling financial, economic and tax crime,” the Federal Public Prosecutor’s Office said in a response.
“The creation of a financial section, for which solid foundations already exist within the Federal Public Prosecutor’s Office, as is clearly evident from this case, means the Federal Public Prosecutor is stepping up this fight. This will, moreover, not only be achieved by this new section that is being established, but also and above all in close collaboration with the organised crime section of the Federal Public Prosecutor’s Office and through the use of all the legal investigative tools at the Federal Public Prosecutor’s Office’s disposal, which in many federal cases have already proven their effectiveness.”
Moroccan community in Belgium
“This agreement has no impact on the financial situation of the BCP Group, which continues to maintain adequate prudential ratios, enabling it to continue its growth and development trajectory in line with its strategic plan,” Anne-Sophie Gentil, spokesperson for Banque Populaire, said.
“BCP and BCDM are sound institutions serving their customers. The resolution of this legal matter enables them to reaffirm their commitment to the highest standards of legal compliance and professional ethics.”
“Historically, Banque Chaabi du Maroc has supported Moroccans around the world through charitable activities. This mission, which serves the public interest, is aimed in particular at the Moroccan community in Belgium,” Gentil said.