Requirements for Foreign Currency Accounts

Foreign currency accounts are granted to individuals and entities primarily in the export-earning sector to facilitate business transactions, not to accumulate foreign currency. These accounts in the domestic banking system are granted to businesses generating a significant amount of foreign currency earnings and for those that need to make regular payments to foreign suppliers, as per Exchange Control Direction 10/2014. 

Authority has been delegated to Authorised Dealers (domestic banks) to open foreign currency accounts for export earners, foreign embassies, and other eligible entities or individuals, in accordance with applicable exchange control regulations. Entities that do not automatically qualify must obtain prior approval from the Central Bank. Domestic banks establish a ceiling on the maximum amount of foreign currency that may be held in these accounts, and any excess must be sold to the domestic bank to ensure compliance and liquidity. Domestic banks are not permitted to open foreign currency accounts for non-residents, who are instead encouraged to conduct their banking with institutions licensed under the International Banking Act.

Legal entities that automatically qualify to operate a foreign currency account include:

a. Businesses which operate in the Commercial-free Zone (CFZ)
b. Businesses which operate in a Designated Processing Area (DPA)
c. Foreign Embassies operating in Belize 
d. Diplomats working in Belize on behalf of other countries

Note that retirees under the “Qualified Retired Persons (QRP) Incentives Act” do not qualify to operate foreign currency accounts.

All applications are submitted to the Central Bank by Authorised Dealers (domestic banks) and with whom the individual or the legal entity has applied to open the foreign currency account. The Central Bank requires that specific information be provided to validate the identities of the parties involved, to conduct background clearance checks for anti-money laundering purposes, to ensure the transaction is bona fide, and to obtain essential statistics for monitoring purposes to process the application.

Note: This application must be completed and submitted by your respective domestic bank. 

Requirements for approval of foreign currency accounts

 

1. Draft application letter

The letter of application for foreign currency accounts should be sent to the Central Bank addressed to the Manager of the Exchange Control Department, and should contain the following information:

a) Purpose of the account
b) Nature of business for applicant
c) If the applicant is a company or other legal entity, provide the names and addresses of the ultimate beneficial owners (UBOs)
d) Source of funds for the account
e) Requested credit limit or maximum account balance
f) If applying for an additional account, the reason for second account
g) If transferring an account from another domestic bank, the reason for the transfer

    2. Gather supporting documentation

    The following documents must be submitted with the application letter:

    a) A completed XCH9 application form, including:
         • The applicant’s signature, along with the company or employer stamp (e.g., Embassy logo) and date
         • The signature of the authorized representative of the domestic bank, along with the bank’s stamp and date
    b) For legal entities, relevant company documents (e.g., Memorandum and Articles of Association, and the latest annual return for established companies)
    c) For export processing companies in the Designated Processing Area, a valid DPA certificate confirming status
    d) Certified or notarized copies of passports or social security cards for each Ultimate Beneficial Owner (UBO)
    e) A clear outline of the ownership structure of the legal entity
    f) For international organizations with externally funded projects, copies of relevant project agreements
    g) For foreign diplomats, an employment letter and valid diplomatic identification, where applicable

     

     

    3. Complete XCH9 form 

    The application form (XCH9) for opening and operating a foreign currency account with an Authorised Dealer must include the following information:

    a) Name of the bank where the account will be maintained
    b) Currency in which the account will be held
    c) Purpose of the account
    d) Expected nature and volume of receipts and payments to be processed through the account
    e) Anticipated maximum credit balance (limit) to be maintained, along with the basis used to determine this amount
    f) Rationale for requesting the foreign currency account

    The Central Bank reserves the right to request any additional information as deemed necessary for the processing of the application.

    Download Foreign Currency Account Application Form

    4. Email letter and supporting documentation
    Email letter of application and supporting documentation to [email protected]. 
    If you have any further questions, please contact the Exchange Control Department of the Central Bank of Belize.