Financial Crime World

Belize Financial Institutions Must Comply with Stringent Regulations

Belize’s financial sector is heavily regulated, with a comprehensive framework in place to oversee and supervise banks, credit unions, and other financial institutions. The regulatory regime provides the legal basis for licensees to operate efficiently and prudently, while ensuring the interests of all stakeholders are protected.

Key Laws Governing Financial Institutions

The following key laws govern the operations of financial institutions in Belize:

  • Central Bank of Belize Act: Established the Central Bank of Belize in 1982 and gave it the authority to supervise and regulate banks and financial institutions.
  • Domestic Banks & Financial Institutions Act: Allows the bank to oversee and grant licenses for domestic banking operations.
  • International Banking Act: Provides the central bank with supervisory and regulatory powers over international banking activities.
  • Credit Unions Act: Designates the Governor of the Central Bank of Belize as the Registrar of Credit Unions, enabling the supervision of credit unions.
  • Money Laundering & Terrorism (Prevention) Act: Establishes provisions for investigating and prosecuting money laundering, terrorism, and related crimes.
  • Exchange Control Act: Governs foreign exchange transactions through accompanying regulations.
  • Treasury Bills Act: Regulates government borrowing.
  • National Payment System Act: Provides a legal framework to support the national payment system.
  • Moneylenders (Amendment) Act: Designates the Central Bank of Belize as the Registrar of Moneylenders.
  • Deposit Insurance Act: Establishes the legal framework for deposit insurance in Belize.
  • Credit Reporting Act: Sets out the rules for fair and accurate credit reporting within the financial sector.

Public Consultations: A Key Component of the Regulatory Process

Public consultations are an important part of the regulatory process, allowing stakeholders to provide input on proposed changes to the regulatory framework. This approach contributes to greater transparency and helps ensure that regulations are effective and proportionate to the risks faced by financial institutions.