Belize’s Financial Services Commission Evolves to Meet Global Demands
A Trusted and Stable Financial Hub
The Financial Services Commission (FSC) has been instrumental in solidifying Belize’s reputation as a trustworthy and stable financial hub. The Commission has made significant strides in modernizing its legislative framework, adapting to new challenges, and developing emerging financial services to compete on the global stage.
Amended FSC Act Reinforces Belize’s Position
In 2023, the FSC Act was amended to address concerns over reputational damage and provide a robust regulatory framework for safeguarding the jurisdiction’s integrity. This move reinforced Belize’s position as an attractive destination for investment, with its strong economic fundamentals and political stability.
Addressing Tax Evasion and Fraud
The Commission has also made notable progress in addressing tax evasion and fraud. In 2007, it expanded its scope to include services that are still offered today. Additionally:
- Belize has implemented automatic exchange of financial information based on the Common Reporting Standard.
- It has entered into cross-border agreements with international partners to combat harmful tax practices.
Regional and International Cooperation
Belize is a member of the Caribbean Financial Action Task Force (CFATF) and works closely with national regulators and industry supervisors to monitor risks and ensure the safety and security of its economy. The Commission’s membership in the National Anti-Money Laundering Committee demonstrates its commitment to adhering to international standards and best practices.
New Responsibilities and Regulatory Oversight
In 2021, the FSC took on a new responsibility: overseeing the administration of Belize’s Securities Industry. This includes:
- Registering and regulating firms and individuals operating within this sector.
- Regulating various businesses and persons operating in and from Belize, including:
- Fiduciary services providers
- Investment funds administrators
- Securities investment businesses
- Auditors
Strengthening the Business Environment
The recent establishment of the Belize Companies and Corporate Affairs Registry (BCCAR) under the FSC’s jurisdiction has streamlined registry services for domestic and international business companies. This move is part of a broader effort to strengthen Belize’s business environment by:
- Implementing modern companies legislation
- Launching an online corporate registry
Balancing Non-Bank Financial Services
Belize has taken a progressive approach to balancing non-bank financial services with competing forces, ensuring a well-registered and sound sector. While the FSC strives to provide up-to-date information on relevant laws, it does not guarantee completeness or accuracy and is not liable for any consequences resulting from actions taken based on this information.
A Model for Regulatory Compliance
The Commission’s efforts have positioned Belize as a model for regulatory compliance and banking regulations in the region, showcasing its commitment to transparency and cooperation with international partners.