Flanders Introduces Fines of Up to €800,000 for Subsidy Fraud: “Fraudsters Sometimes Escape a Real Sanction Today”

Flemish authorities are introducing fines of up to €800,000 for subsidy fraud, alongside the full recovery of money obtained improperly. The sanctions will also apply when prosecutors decide not to pursue a case.

Justice Minister Zuhal Demir and Budget and Finance Minister Ben Weyts are creating a general Flemish subsidy-fraud offense. From September, subsidy fraud will be punishable across the country, but not every case will reach a criminal court. When prosecutors decline to proceed, Flanders will be able to handle the case administratively and impose a fine instead of limiting the response to repayment.

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Fraudsters sometimes escape a real sanction today when prosecutors do not pursue a case.

The maximum penalty will depend on the conduct. People who lie or withhold important information to obtain or retain a subsidy can face a fine of up to €800,000. Those who knowingly use subsidy money for another purpose can be fined up to €600,000. Anyone who deliberately hides that they are not entitled, or are only partly entitled, to a subsidy can face a fine of up to €120,000.

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Repaying money obtained improperly can hardly be called a punishment. We are closing that loophole. A substantial fine will now follow as well.

The government is also tightening checks on applicants linked to violent radicalization, violent extremism or terrorism. People or organizations that support or encourage such activity will be excluded from subsidies. The Finance Inspectorate and federal police will be able to check whether an applicant is known in connection with those activities, followed by a thorough integrity investigation when necessary.

“Fraudsters sometimes escape a real sanction today when prosecutors do not pursue a case,” Demir said. “Repaying money obtained improperly can hardly be called a punishment. We are closing that loophole. A substantial fine will now follow as well.” She added: “Anyone who wants to undermine our society cannot expect that same society to pay for it.”

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Anyone who wants to undermine our society cannot expect that same society to pay for it.