Financial Crime World

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Belize’s AML and KYC Regulations: What You Need to Know

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Belize’s Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations are designed to combat financial crimes such as money laundering, terrorist financing, and other illicit activities. As a financial institution operating in Belize, it is essential to understand the requirements and implement effective measures to ensure compliance.

Verification of Identity

According to Belize’s regulations, identity verification is not limited to a one-time process. It is required multiple times, depending on the type of transaction and risk assessment. For instance:

  • When onboarding a new customer, identity verification is necessary.
  • If dealing with high-risk transactions or customers, further verification may be required.

Politically Exposed Persons (PEPs) and Enhanced Due Diligence

Belize’s regulations require financial institutions to identify PEPs, individuals who hold public office or exhibit a higher risk profile. Shufti Pro offers AML screening services that screen an individual’s ID attributes against global watchlists and databases to determine if they are a PEP. This service can be used:

  • Before establishing a relationship with the customer
  • After onboarding a new customer

Reliance on External Services

Belize’s regulations allow financial institutions to seek external services to apply due diligence measures. However, it is essential to:

  • Collect all relevant data from the third-party service provider without undue delay
  • Maintain liability for compliance with AML and KYC obligations

Record Retention

As per Belize’s regulations, financial institutions are required to retain data for not less than five years as part of their AML and KYC obligations. This includes:

  • Processing
  • Collecting
  • Managing relevant information from third-party service providers without undue delay

In conclusion, Belize’s AML and KYC regulations require financial institutions to implement robust measures to prevent financial crimes. By understanding the requirements and implementing effective verification processes, reliance on external services, and record retention practices, financial institutions can ensure compliance with these regulations and maintain a safe and secure financial environment in Belize.