The European Public Prosecutor's Office (EPPO) continues to focus on cross-border fraud affecting the EU's financial interests, and the EU continues to expand its sanctions regime and update its anti-money laundering (AML) rules, further enhancing the groundwork for enforcement against intermediaries.
New criminal law codes have been adopted in Belgium, introducing significant changes, including the introduction of a self-standing offense of “ecocide” and enhanced provisions demonstrating the intention to prioritize the fight against social dumping. Heftier fines have also been introduced.
The new Private Investigations Act (PIA) has entered into force late December 2024, introducing complex obligations for companies across all sectors undertaking internal investigations. Meanwhile, Belgium's whistleblowing regulations have led to increased reporting.
Looking forward, companies should remain vigilant against social fraud, social dumping, and improper behaviour at work, and be attentive to managing internal investigations. Businesses should expect a continued focus on environmental criminal law, money-laundering, bribery, and fraud, with the EU persisting in its efforts to harmonize laws and protect its interests through criminal law.
Investigations trends/developments
Environmental compliance
Authorities, public prosecutors, and environmental NGOs are increasingly leveraging criminal law litigation to advance environmental protection. We have seen a rise in environmental prosecutions over the past years and expect this trend to continue, driven by new EU rules on the protection of the environment through criminal law.1
Social fraud, social dumping, and modern slavery
Social dumping remains a significant concern. The construction sector has been the target of social inspection services, who expect businesses to remain vigilant and proactive in their compliance efforts.
Chain liability means that not only the direct employer but also other parties up the chain, including the principal contractor, can be held accountable for violations. Social inspection services are increasingly “climbing up the chain” in their investigations, and prosecutors are increasingly looking for the “deep pockets” in subsequent enforcement action.
Inappropriate behaviour at work
Bullying at work is increasingly drawing the attention of the media and is being reported to, and investigated by, the Belgian authorities.Victims are seeking to assert their rights based on, e.g., workplace well-being legislation. We are seeing more extensive internal investigations into workplace culture, which go beyond bullying to include toxic leadership and other forms of improper behaviour at work.
Law reform
An offense of “ecocide” has been introduced under the new Belgian Criminal Code, which enters into force in April 2026. It is defined as “Deliberately committing, by act or omission, an unlawful action causing serious, widespread and long-term damage to the environment in the knowledge that this act causes such damage”. The damage caused must be serious and widespread and long-term. The offender must have known that their conduct or omission would cause the damage. Read more about this new offence here.
Businesses should also note important legislative reform in social criminal law. A formal definition of "social dumping" has been introduced, reflecting European standards. The term now includes various unfair practices that reduce labour and operating costs illegally, leading to unfair competition and a violation of employees' rights. Examples include illegal posting of employees or self-employed individuals to Belgium, not paying them remuneration in compliance with the applicable minimum wages, and employing or housing them in unsafe, unhealthy, or exploitative circumstances. Heftier fines are available, and convicted companies can now be prevented from bidding on public contracts or obtaining concessions for up to five years.
Internal investigations
The new Private Investigations Act, in force now, fundamentally changes the legal landscape governing private investigations in Belgium, with a very strong focus on protecting the rights and interests of the subject of an investigation.
The new Act will have a significant impact on how internal investigations should be conducted. There are:
- new licensing requirements, both for individual investigators and for internal investigation teams;
- prohibited areas of investigation (such as political opinions, sexual conduct, or health data); and
- formal documentation processes, including requirements for investigation reports.
Belgian courts oversee compliance, and in specific circumstances companies will be obliged to report any indications of criminal conduct uncovered during an internal investigation to the authorities. Companies across all sectors must carefully evaluate and revise how they conduct investigations with a Belgian touch point.
Continued compliance with privacy obligations remains essential (in particular when dealing with private and sensitive data). Employees and trade unions are acutely aware of privacy rules, and are increasingly leveraging them to challenge the outcome of an investigation.
Cross-border coordination
European Public Prosecutor’s Office
By the end of 2023, the EPPO had opened 54 investigations in Belgium, 32 of which had a cross-border dimension. These investigations primarily target expenditure and VAT fraud, but also include money laundering, corruption, and the formation of criminal organizations, all affecting the EU’s financial interests.
Sanctions
More than two years after Russia's invasion of Ukraine, the EU continues to update and expand its sanctions regimes. In summer 2024, a new "best efforts" requirement was introduced that requires EU businesses to ensure their non-EU subsidiaries do not undermine EU trade sanctions. We still see relatively limited sanctions enforcement activity, although the EU keeps pushing Member States to do more, including adopting new rules that focus on criminal law sanctions enforcement.
AML
Yet another area marked by EU influence is AML. The EU adopted a new package of AML rules and established a new supervisory AML authority (AMLA). This authority will directly supervise a limited number of financial institutions that are exposed to higher risks of money laundering. The AMLA will also coordinate the activities of national AML supervising bodies and FIUs.
Whistleblowing
Over the past year, Belgium's new whistleblowing rules have led to a noticeable increase in speaking-up. This surge highlights the importance of cross-border coordinated investigations, as corporate misconduct often spans multiple jurisdictions. Effective collaboration between regulatory authorities and law enforcement agencies is essential to address these complexities. By integrating whistleblowing mechanisms within corporate governance, organizations can better manage cross-border compliance risk, protecting their reputations globally.
Predictions for 2025
Looking ahead to 2025, companies will need to remain vigilant against social fraud, social dumping, and improper behaviour at work, and be ever more attentive to managing internal investigations. Businesses should expect a continued focus on environmental criminal law, money-laundering, bribery, and fraud.
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Footnotes
1. Directive (EU) 2024/1203 of the European Parliament and of the Council of April 11, 2024 on the protection of the environment through criminal law and replacing Directives 2008/99/EC and 2009/123/EC, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32024L1203.
This article is part of the A&O Shearman Cross-Border White-Collar Crime and Investigations Review. Please click here for our overviews and insights in other jurisdictions.
