Central Bank of Belize Issues AML/CFT/CPF Guidelines for Regulated Institutions
Introduction
December 2023 - The Central Bank of Belize has published guidelines for its regulated institutions, outlining the requirements for Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) measures.
Purpose and Scope
The guidelines aim to prevent and detect money laundering, terrorist financing, and proliferation financing in Belize’s financial system. The regulations apply to banks, credit unions, payment service providers, and payment system providers licensed under the National Payment Systems Act.
Key Definitions
- Immediate Family: Parents, grandparents, siblings, spouse, children, grandchildren, and in-laws of a designated person.
- Intermediary: A financial institution that acts as a conduit between suppliers of funds (depositors) and users of funds (borrowers).
- Occasional Transaction: Any one-off transaction, including cash transactions conducted by an individual without an account or facility at the financial institution.
- Payable-Through Accounts: Correspondent accounts used directly by third parties to transact business on their own behalf.
- Politically Exposed Persons (PEPs): Individuals in Belize or a foreign country entrusted with public functions, their family members, or close associates.
Other Important Definitions
- Remittance Services Providers: Businesses that accept cash, cheques, or other monetary instruments in one location and make payments to beneficiaries in another location.
- Senior Political Figures: Senior figures in the executive, legislative, administrative, military, or judicial branches of a government or political party.
- Settlors: Persons or companies who transfer ownership of their assets to trustees by means of a trust deed.
Guidelines
The guidelines provide information on the following topics:
- Source of Funds: The origin and means of transfer for monies accepted for account opening and subsequent transfers.
- Source of Wealth: The means through which a customer acquires their wealth (e.g., through business or inheritance).
- Supervisors: Competent authorities responsible for ensuring compliance by financial institutions with AML/CFT requirements.
Effective Date and Compliance
The guidelines are effective immediately and apply to all regulated institutions in Belize. Failure to comply may result in regulatory action, including fines and penalties.
Conclusion
By implementing these guidelines, the Central Bank of Belize aims to maintain a secure and stable financial system while preventing illicit activities that threaten national security and international cooperation.