Belize Banking Regulations Compliance: Strong Reputation and Integrity in Financial Services
Introduction
The Financial Services Commission (FSC) has played a crucial role in solidifying Belize’s reputation as a financially sound and politically stable country, making it an ideal destination for investment. The FSC Act, No. 8 of 2023, was amended to address new challenges and provide a regulatory framework that safeguards the jurisdiction from reputational damage.
Evolution of Financial Services
In 2007, the scope of financial services expanded to include current offerings, while international cooperation and standard-setters’ recommendations have led to the erosion of secrecy and anonymity laws. This has addressed harmful tax practices and ensured compliance with global standards.
- Implementation of automatic exchange of financial information based on the Common Reporting Standard
- Cross-border agreements aimed at combating tax evasion and fraud
Regulatory Framework
As a member of the Caribbean Financial Action Task Force and the National Anti-Money Laundering Committee, the FSC works closely with fellow regulators and industry supervisors to ensure the safety and security of the economy by monitoring risks.
- Monitoring of risks to safeguard the economy
- Regulation of firms and individuals doing business in the sector
New Developments
In December 2021, the Commission took on responsibility for overseeing the Securities Industry in Belize. The Commission also regulates various businesses and persons operating in and from Belize, including:
- Fiduciary services
- Investment funds
- Securities investment businesses
- Auditors of regulated entities
Strengthening Business Environment
The establishment of the Belize Companies and Corporate Affairs Registry (BCCAR) on July 30, 2022, under the FSC’s jurisdiction has merged registry services previously provided separately by domestic and international business companies registries. This move aims to transform and strengthen the business environment for modern companies legislation and online corporate registry services.
Conclusion
Belize has adopted a modern approach to regulate non-bank financial services, balancing competing forces to ensure a well-regulated and sound sector. The FSC’s commitment to strengthening Belize’s reputation as a financially sound and politically stable country makes it an attractive destination for investment and business.