Photo: Hon. Christopher Coye, Minister of State
Minister of State, Hon. Christopher Coye “relatively pleased” with outcome
BELIZE CITY, Thurs. June 29, 2023
Belize earlier this month completed its second peer review of the Global Forum on Transparency and Exchange of Information for Tax Purposes of the Organization for Economic Co-operation and Development (OECD). The latter on its website, www.oecd.org explains that “Transparency and exchange of information for tax purposes is about putting an end to bank secrecy and tax evasion through global tax co-operation. The Global Forum is a key international body working on the implementation of international standards. It ensures that these high standards are in place around the world through its monitoring and peer review activities.” The ultimate goal of the Global Forum is the implementation of its global standards across jurisdictions to foster closer co-operation among tax authorities on matters such as cross-border investments which have become increasingly easier to make with globalization. When taxpayers seek to manipulate the system to evade taxes, that hidden wealth, says the OECD, “reduces the revenues available to provide necessary public services …”
The first of two standards allows for exchange of information on request (EOIR) for a tax investigation. The second is called an automatic exchange of information (AEOI) which refers to a pre-defined set of information exchanged each year on financial accounts held by non-residents. The AEOIs are subject to confidentiality and security safeguards.
The peer reviews are conducted by member jurisdictions and features member states reviewing “the effectiveness of each other’s implementation of the international standards.” Belize’s latest peer review was for the period January 2019 to December 2021. The process included the submission of a technical compliance questionnaire, and then an onsite assessment that was conducted in September 2022. After the publication of a draft report in April 2023, a team comprising representatives of the Financial Services Commission (FSC), the Financial Intelligence Unit and the Central Bank of Belize travelled to Paris to meet with the OECD Peer Review Group. Recently back from Paris, Director General of the FSC, Claude Haylock told Amandala that Belize “passed” the peer review. Minister of State in the Ministry of Finance, Senator Christopher Coye further explained that “Of the ten elements assessed, Belize received 4 compliant, 3 largely compliant and 3 partially compliant ratings.” He said they are “relatively pleased” with those results but are intent on further improving them. He shared, “To this end, we have already taken through the House and Senate amendments to the Companies Act and the International Limited Liability Companies Act. We expect to table amendments to the Trusts Act and the Limited Liability Partnerships Act at the next House meeting this Friday. All these address those areas we were determined to be partially compliant on. This will enhance the relevant authorities’ powers to require information and to provide timely responses, whereupon Belize should be in a position to even further improve its overall rating.”
Haylock did say that Belize’s work is not yet done. That’s because the country is undergoing a second peer review, this one by the Caribbean Financial Action Task Force (CFATF). As part of the mutual evaluation process, an onsite assessment of the CFATF is set to take place in December this year. At that time, the assessors will meet with the regulators, the private sector and members of the Government to understand the framework in Belize. In the meantime, Belize is currently ensuring technical compliance, which is why the recent raft of legislation was passed in Parliament in the first half of this year relating to anti-money laundering, combating financing of terrorism and proliferation financing (AML/CFT/PF).
A second component of the evaluation is effectiveness in enforcement, which our authorities consider even more challenging than technical compliance. Haylock explained that this includes the implementation of the law, effectiveness at obtaining requested information, and how robust is our framework to ensure there is no criminality. Minister Coye told Amandala, “You are right that the overwhelming majority of countries that have been assessed in connection with AML/CFT/PF have not received favourable results. We are hopeful that with our continuing efforts on both technical compliance and effectiveness in enforcement, we will not face a similar fate. The onsite assessment by the CFATF is to take place in December. We have a lot more work to be done in a short time, and we look forward to the cooperation of all stakeholders. A diligent, concerted and collective effort will surely deliver a favourable outcome.”