Financial Crime World

Belize Moves to Enhance Corporate Transparency with New Beneficial Ownership Disclosure Rules

The Government of Belize has introduced a new amendment to its Companies Act, aimed at strengthening corporate governance and transparency in the country. The Belize Companies (Amendment) Act, 2023, requires companies to maintain accurate and up-to-date records while introducing new obligations for nominee directors and shareholders.

Key Changes

  • Ultimate Beneficial Ownership (UBO) Disclosure: Companies are now required to disclose their UBO information through the Online Business Registry System (OBRS) portal. This information will be confidential and only accessible to the registered agent of the company, who can request a comprehensive search on behalf of the company they represent.
  • Nominee Director Responsibilities: The amendment clarifies the responsibilities of nominee directors, requiring them to assume the same duties and obligations as substantive directors upon consenting to act in such a capacity. This move aims to strengthen corporate governance and align nominee director accountability with the company’s overall performance.

Foreign Company Registration

  • Transparency: Foreign companies registering in Belize must now provide the addresses of their proposed registered office in their application, enhancing transparency and fostering a clearer understanding of foreign entities operating within the country.
  • Real Estate Ownership: The amendment authorizes registered foreign companies to own real estate within Belize, paving the way for increased foreign investment and economic growth.

Compliance Requirements

  • Declaration Filing: Nominee directors and shareholders of existing companies are required to file a declaration with the Registrar within 30 days of the Act’s enforcement, specifying their status and disclosing the identity of their nominator. Non-compliance with this requirement is considered an offense, and individuals found guilty may be subject to administrative fines imposed by the Commission.

Conclusion

The Belize Companies (Amendment) Act, 2023, underscores the country’s commitment to upholding international standards in corporate transparency and governance. By implementing these changes, Belize aims to enhance its reputation as a responsible business jurisdiction and foster an environment conducive to sustainable economic growth.