Central Bank of Belize Issues Guidelines on Anti-Money Laundering and Combating the Financing of Terrorism
New Guidelines for Financial Institutions to Combat Money Laundering and Terrorist Financing
BELIZE CITY, Belize - The Central Bank of Belize has released new guidelines for financial institutions regulated by the bank to combat money laundering, terrorist financing, and proliferation financing. These guidelines came into effect in December 2023 and provide clarity on key terms used in anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.
Definition of Politically Exposed Persons (PEPs) and Close Associates
The guidelines define a PEP as an individual entrusted with public functions, including their family members and close associates. A Close Associate is defined as any individual who maintains an unusually close relationship with a PEP and has the ability to conduct substantial domestic and international financial transactions on behalf of that person.
Responsibilities of Financial Institutions
Financial institutions regulated by the Central Bank of Belize are responsible for conducting customer due diligence, which includes:
- Establishing the identity of customers
- Monitoring account activity to detect suspicious transactions
- Maintaining accurate records
- Reporting any suspicious transactions to the competent authorities
“We take the risk of money laundering and terrorist financing very seriously,” said a spokesperson for the Central Bank of Belize. “These guidelines are designed to ensure that financial institutions in Belize are equipped to effectively combat these threats and protect the integrity of our financial system.”
Definition of Remittance Services Providers
The guidelines also provide clarification on the definition of remittance services providers, including:
- Money transfer companies
- Check cashers
- Currency exchange houses
Responsibilities of Financial Institutions - Identifying and Reporting Suspicious Transactions
Financial institutions are responsible for identifying and reporting suspicious transactions to the competent authorities. They must also cooperate with law enforcement agencies and other regulatory bodies.
The Central Bank of Belize has emphasized the importance of compliance with AML/CFT regulations, noting that failure to comply can result in serious consequences, including fines and reputational damage.
“We urge all financial institutions regulated by us to carefully review these guidelines and ensure that they are fully compliant with our regulations,” said the spokesperson. “Together, we can maintain a robust and secure financial system that serves the people of Belize.”