Financial Crime World

Belize AML/KYC Regulations: What You Need to Know

The Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations in Belize are designed to prevent financial institutions from being used for illicit activities. To comply with these regulations, businesses must implement robust customer due diligence measures.

KYC Requirements

According to the Belize Financial Intelligence Unit, a bank statement or government-issued document showing an individual’s address and name is required as part of the KYC process. Additionally:

  • Identity verification is not a one-time process, but rather a multi-instance procedure that must be repeated at various stages throughout a customer relationship.
  • Businesses may require additional documentation to verify a customer’s identity.

Timing of Identity Verification

The timing of identity verification depends on the specific requirements of each business. For instance:

  • It is recommended to verify a customer’s identity when onboarding a new client.
  • Whenever transaction data exceeds certain monetary thresholds defined by Belize regulations, businesses must verify the customer’s identity again.

Enhanced Due Diligence (EDD) Requirements

In high-risk situations, such as dealing with customers who may pose a higher risk of money laundering or terrorist financing:

  • Businesses must apply additional due diligence measures to mitigate these risks.
  • This includes verifying the identity of individuals and entities, as well as screening against watchlists of global regulatory authorities and domestic databases.

Politically Exposed Persons (PEPs) and High-Risk Individuals

The EDD requirements under Belize regulations also require businesses to:

  • Identify PEPs, public office holders, or individuals with a higher risk profile.
  • Apply additional due diligence measures to mitigate the risks associated with these individuals.

Shufti Pro offers an AML Screening service that screens against global watchlists and domestic databases to facilitate this process.

External Services

Businesses may rely on external services to apply due diligence measures. However:

  • It is essential to note that businesses remain liable for maintaining compliance with AML and KYC obligations, regardless of reliance on external services.
  • Businesses are responsible for collecting all necessary data from these third-party providers without undue delay.

Data Retention

Belize regulations require businesses to retain customer data for not less than five years as part of their AML and KYC obligations. In cases where this information is processed, collected, and managed by a relevant third-party provider:

  • Businesses are liable to collect all necessary information from these providers without undue delay.

Conclusion

By understanding the requirements outlined in Belize’s AML/KYC regulations, financial institutions can ensure compliance with international standards and mitigate the risk of being used for illicit activities.