Belize Cracks Down on Money Laundering and Terrorist Financing: New Guidelines for Financial Institutions
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Belize City, Belize - New Measures to Prevent Illicit Activities
The Central Bank of Belize has introduced new guidelines aimed at preventing money laundering and terrorist financing in the country’s financial sector. The guidelines come into effect immediately and are designed to ensure that banks, financial institutions, and money transfer services adhere to international standards and regulations.
Definition of Money Laundering
According to the guidelines, money laundering is defined as:
- The conversion or transfer of property, including its concealment, disguise, or reallocation, with the intent to hide or disguise the nature, source, location, ownership, or control thereof.
- Activities such as structuring deposits, using shell companies, and transferring funds between accounts.
Definition of Terrorist Financing
The guidelines also define terrorist financing as:
- Any act of providing or collecting funds for a terrorist organization, including the provision or collection of funds intended to be used in whole or in part to finance any act or activity that is intended to cause death or serious bodily harm to a person, or to endanger a person’s life.
Offenses and Reporting Requirements
The guidelines emphasize that money laundering and terrorist financing are serious offenses under Belizean law. Banks and financial institutions are required to:
- Report suspicious transactions to the relevant authorities.
- Maintain records of all customer dealings.
Vulnerability of Financial Institutions
The guidelines highlight the vulnerability of banks and financial institutions to money laundering, citing the ease with which launderers can convert cash into financial instruments such as bank accounts or insurance products.
Measures to Combat Money Laundering and Terrorist Financing
To combat these illicit activities, the guidelines recommend that financial institutions:
- Implement robust customer due diligence procedures.
- Conduct regular reviews of customer transactions.
- Maintain records of all customer dealings.
The Central Bank of Belize has also emphasized the importance of cooperation between financial institutions, law enforcement agencies, and regulatory bodies in preventing money laundering and terrorist financing. The bank has called on financial institutions to report any suspicious transactions or activities to the Financial Intelligence Unit (FIU).
Conclusion
The new guidelines are seen as a major step forward in Belize’s efforts to combat money laundering and terrorist financing, and will help to strengthen the country’s financial sector and maintain international standards.
Contact: [Name], Central Bank of Belize, [Email], [Phone]