Safety Knights

Yes, it does, and it needs to be guarded. For belt sanders, you should only have the part exposed on the front side (facing you if you're using this equipment) and as little as possible to do the task based on what you're actually sanding. In addition to the guarding that's already in place now, you'll need to guard the bottom of the belt all the way up to the bottom of the work rest, then cover up the spindle on the side. Again, how much is exposed between the work rest and the top of the belt depends on the size of what you're actually sanding.

Just like with a bench grinder, the work rest needs to be adjusted to within 1/8", as well. Your's looks pretty far out of adjustment.

Maybe Fitz or some other folks on here can provide some additional input. I've had these in my previous workplaces, but I haven't personally used a belt sander like this in about 5+ years, so hopefully they'll chime in if I'm forgetting something. Lots of good safety pros on here!

Guard must be fastened so tools must be used to open it. If the shaft rotates at the bottom a hazard. If the belt is exposed around to the left a hazard. Only enough exposed to do the job.
Drew is mostly spot on!
A picture of the machine showing the left side would be helpful.