Financial Crime World

Belize’s Central Bank Cracks Down on Financial Crime: Money Laundering and Terrorism Prevention Act

The Central Bank of Belize has taken rigorous measures to combat financial crime and terrorism financing through its Money Laundering and Terrorism (Prevention) Act. This act, regulated by the Financial Intelligence Unit (FIU), sets guidelines for financial institutions to prevent illicit activities.

Required Measures for Financial Institutions

Financial institutions in Belize are obligated to:

  1. Maintain a program for identifying, mitigating, and reporting suspicious transactions.
  2. Implement customer due diligence measures including identification and background checks.

Extensive Regulations

The Money Laundering and Terrorism (Prevention) Act’s regulations are not confined to banks and financial institutions. The sectors covered include:

  • Casinos
  • Real estate
  • Money services businesses

The Role of Financial Intelligence Unit (FIU)

The Central Bank of Belize established the Financial Intelligence Unit (FIU) to oversee the implementation and enforcement of these measures. The FIU acts as a central reporting agency for:

  1. Suspicious transactions
  2. Financial intelligence

Collaborative Efforts

The FIU cooperates with:

  1. Law enforcement agencies (police and US FIU)
  2. International partners (Caribbean Financial Action Task Force)

This collaboration aids in:

  1. Analyzing intelligence
  2. Conducting investigations
  3. Seizing criminal proceeds

Proactive Approach

The Central Bank of Belize:

  1. Promotes financial transparency in the country
  2. Implemented a new risk-based approach to regulating offshore banks and other financial institutions
  3. Established a dedicated team to ensure compliance with anti-money laundering and counter-terrorism financing regulations

Ongoing Challenges

Belize faces challenges due to its:

  1. Geographic location
  2. Lack of financial depth

To tackle these challenges:

  1. Central Bank collaborates with international partners to strengthen regulatory framework
  2. Enhances investigative capabilities

Conclusion

The Money Laundering and Terrorism (Prevention) Act is essential in promoting financial transparency and combating financial crimes in Belize. The Central Bank of Belize, through its Financial Intelligence Unit, continues to make a difference with support from all sectors.