|
|
|
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
Legislation
The regulatory framework governing the supervision and regulation of banks and other financial institutions in Belize consists of various laws including the Central Bank Act, the Banks and Financial Institutions Act and Regulations, the International Banking Act, the Money Laundering (Prevention) Act, Regulations and Guidance Notes, and the Financial Intelligence Unit Act. These, along with circulars, provide a comprehensive framework through which the important function and role of these financial intermediaries can be efficiently and prudently carried out.
The Central Bank of Belize (CBB) was established under the Central Bank Act in 1982 and various amendments have since been made.
In 1991, CBB issued a mandate to the Financial Sector Supervision Department (FSSD) to perform a comprehensive review of banking legislation with the objective of modernizing the previous legislation to incorporate best practices and basic standards as recommended by the Basle Committee on Banking Supervision, Bank for International Settlement; to harmonize our financial regulation with those in the region, and to capture other types of financial institutions. The result was the Banks and Financial Institutions Act (BFIA), which strengthened the supervisory/regulatory standards of banks and financial institutions in several areas including: licensing criteria; capital adequacy, director and management qualifications, regulation of licensee activities, winding-up provisions, and other banking issues such as external auditor requirements and on-site examinations. Subsequent to the BFIA, the circulars listed below were issued by the Central Bank.
On 7 October 2002, the Offshore Banking (Amendments) Act 2002 was enacted to change the name of the Offshore Banking Act and offshore banks to International Banking Act (IBA) and international banks, respectively. The amendments also strengthen the supervisory and investigative powers of the CBB to meet international standards, to provide better transparency and exchange of information with respect to international banking and to empower the CBB to grant licenses for international banking. The minimum capital standards were raised, requiring an international bank with an “A” class-unrestricted license to start with a minimum capital of US$3,000,000 for a local company and US$25,000,000, for a foreign bank. A “B” class-restricted licenses for an international bank now requires minimum capital of US$1,000,000, in the case of a local company, and US$15,000,000, in the case of a foreign bank. Since the passage of the IBA, CBB has processed over thirty international banking applications but has only granted seven licenses. The following Circulars were issued by the CBB.
Since, the enactment of the first Credit Unions Act in 1944, credit unions in Hence, in December 2005, the Credit Unions Act was amended to achieve three main objectives, namely, to allow integrated supervision of the financial system in Belize by bringing credit unions under the regulatory umbrella of the Central bank, to upgrade the supervisory standards of credit unions in order to comply with international best standards and finally, to improve efficiency by setting administrative penalties for non-compliance with the requirements of the Act. Consequently, as of December 2005, the Central Bank of Credit Unions Act and its Amendments Credit Unions Act Chapter 314, Revised Edition 2003 Credit Unions (Amendment) Act, 2005 Credit Unions (Amendment) Act, 2007
The Money Laundering and Terrorism (Prevention) Act, 2008 (MLTPA) was enacted on 30 December 2008 and came into force on 12 January 2009. This legislation improved provisions for the investigation and prosecution of money laundering, terrorism and other related crimes. It also provides for the forfeiture of the proceeds of crime and terrorist property and requires reporting entities to take preventative measures to help combat money laundering and terrorist financing. In addition, the MLTPA sets out standards by which financial institutions are to be supervised by their respective regulatory authorities. It covers customer due diligence, reporting and record keeping requirements, freezing of funds, disclosure and international cooperation issues. The MLTPA further highlights the role and powers of supervisory, regulatory and competent authorities allowing these authorities to issue sanctions for non-compliance with the prescribed legal requirements. · Financial Intelligence Unit Act, 2002 The Financial Intelligence Unit Act (FIUA) was enacted on 16 September 2002 to transfer the Anti-Money Laundering Supervisory Authority from Central Bank of Belize to the Financial Intelligence Unit (FIU). By December 2002, the Financial Intelligence Unit was established, headed by the former Governor of the Central Bank of Belize, Mr. Keith Arnold, as the Director. The FIU has the power to investigate and prosecute financial crimes, to coordinate the cooperation between law enforcement agencies, government departments and other regulatory bodies in evolving methods and policies to prevent and suppress financial crimes; and to process all request for legal assistance from foreign countries relating to financial crimes. Financial crimes include those set out in the MLPA but also include more complex financial crimes, such as internet fraud, pyramid schemes, and illegal deposit taking. In keeping with the Government’s commitment to maintain a fixed exchange rate, Statutory Instrument No. 30 of 1976 outlines the local regulations governing transactions that generate foreign exchange inflows or outflows from Belize. Over the years there has been much liberalization of the system with the increased availability of credit cards that facilitate external transactions by residents of Belize. The level of authority delegated by the Central Bank to authorized dealers has also increased with a view to reducing red tape and delays while at the same time maintaining the protection that the system provides the fixed exchange rate. In 2004, the Exchange Control Circulars were revised and made available to authorized dealers and interested members of the public. Work is currently being done on a booklet that will contain answers to some of questions that are frequently asked by members of the public.
|
 |
 |
|
Home |
About the Bank |
Research and Data |
Publications Currency | News | Gold Coins | Site Map | Contact Us | FAQ |
|
"Powered by WSI"
|
