Belize Fails to Meet Standards on Due Diligence Procedures for Financial Transactions
===========================================================
Belize has been found to be lacking in its due diligence procedures for financial transactions, according to a recent report. The country’s failure to meet international standards on money laundering and terrorist financing has raised concerns among financial regulators.
Non-Compliance with FATF Recommendations
The report, which assessed Belize’s compliance with the Financial Action Task Force (FATF) Recommendations, gave the country low ratings on several key areas. Specifically:
- Belize was found to be non-compliant in its procedures for dealing with non-profit organizations.
- The country failed to implement measures to prevent the misuse of new technologies.
Concerns over Transparency and Beneficial Ownership
The report also highlighted concerns over Belize’s lack of transparency and beneficial ownership of legal persons and arrangements, which are critical components of due diligence procedures. Additionally:
- Belize was found to be partially compliant in its efforts to prevent the misuse of correspondent banking relationships.
- The country’s procedures for dealing with higher-risk countries were also found to be partially compliant.
Areas of Compliance
On a more positive note, Belize was found to be largely compliant in several areas, including:
- Assessment of risk and application of a risk-based approach
- National cooperation and coordination
- Implementation of targeted financial sanctions related to terrorism and terrorist financing
- Customer due diligence procedures
- Record-keeping requirements
- Reliance on third parties
Urgent Action Required
The report’s findings have sparked concerns among financial regulators and anti-money laundering experts, who are urging Belize to take immediate action to strengthen its due diligence procedures. Failure to do so could result in the country being added to a list of jurisdictions deemed non-cooperative with international efforts to combat money laundering and terrorist financing.
Response and Next Steps
In response to the report’s findings, Belize has announced plans to implement new measures aimed at strengthening its due diligence procedures and improving transparency and beneficial ownership requirements. The country is also working to enhance its cooperation with other countries and international organizations to combat financial crimes.
Accessing the Report
The full report can be accessed on the FATF website, and it provides a comprehensive overview of Belize’s compliance with international standards on anti-money laundering and combating the financing of terrorism.