Financial Crime World

Central Bank of Belize Issues AML/CFT/CPF Guidelines for Regulated Institutions

December 2023 - New Guidelines to Combat Money Laundering and Terrorist Financing

The Central Bank of Belize has published guidelines for financial institutions regulated by the bank to combat money laundering, terrorist financing, and other financial crimes. The guidelines aim to ensure that these institutions comply with international standards and best practices in the fight against illicit activities.

Definition of Key Terms

  • A “person” is defined as a natural or legal person, including:
    • Corporations
    • Partnerships
    • Trusts
    • Estates
    • Joint stock companies
    • Associations
    • Syndicates
    • Joint ventures
    • Unincorporated organizations
  • Politically Exposed Persons (PEPs) are defined as individuals entrusted with public functions, their family members, or close associates.
  • Other key terms include:
    • “Intermediary”: a financial institution that acts as a conduit between suppliers of funds and users of funds
    • “Occasional transaction”: any one-off transaction conducted by a person 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

Remittance Services Providers

  • Remittance services providers include:
    • Money remittance companies
    • Check cashers
    • Issuers of money orders and traveler’s checks
    • Currency exchange houses
    • Stored value product companies
  • These businesses accept cash, cheques, or other monetary instruments in one location and make payments to beneficiaries in another location through various means.

Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Requirements

  • Financial institutions are required to:
    • Identify and verify the identities of customers and beneficial owners
    • Monitor transactions
    • Report suspicious activities
    • Maintain accurate records

Additional Definitions and Concepts

  • “Settlors” are defined as persons or companies that transfer ownership of their assets to trustees by means of a trust deed.
  • Shell banks, which are banks incorporated in jurisdictions with no physical presence, are identified as potential risks in the fight against money laundering and terrorist financing.

Supervision and Compliance

  • The Central Bank of Belize has designated supervisors responsible for ensuring compliance by financial institutions with AML/CFT requirements.
  • The bank has also defined “third parties” as individuals or entities that are not direct parties to a contract, agreement, or transaction but have an interest in or are affected by it.

Conclusion

These guidelines aim to ensure that financial institutions regulated by the Central Bank of Belize comply with international standards and best practices in the fight against money laundering, terrorist financing, and other financial crimes. The bank’s supervisory authorities will monitor compliance with these guidelines to prevent and detect illicit activities.

For more information on the AML/CFT/CPF guidelines for regulated institutions, please contact the Central Bank of Belize.