_{(l-r) FIU director Leni Ysaguirre-McGann and Minister of State for Finance – Hon. Chris Coye}

by William Ysaguirre

BELIZE CITY, Mon. Jan. 27, 2025

Belize’s well-regulated financial  sector and its exemplary efforts at strengthening its anti-money laundering framework have helped Belize achieve a gold standard status shared by less than 15 percent of nations in the world, making its financial services sector prime for investment, affirmed Minister of State for Finance, Economic Development and Investment, Hon. Chris Coye. Minister Coye was speaking at the National Anti-Money Laundering Committee’s presentation of its 4th Round Mutual Evaluation Report by the Caribbean Financial Action Task Force (CFATF) at the Best Western Biltmore Plaza Hotel on Monday afternoon, January 27.

_{Central Bank Governor, Kareem Michael}

The favorable rating Belize received in this latest evaluation was the result of several legislative actions passed by the National Assembly in 2022, 2023 and 2024, as Prime Minister Hon. John Briceño intensified Belize’s preparations for the 4th round evaluation. His decisive action paved the way for budgetary allocations, with both Cabinet and Parliament dedicating time and resources to avoid being black-listed or even grey-listed. This was vital, as being grey-listed affects the willingness of international financial institutions when they are considering offering grants or concessionary funding to Belize, and the terms and conditions.

Belize’s innovative approach to ensure that its framework remains strong has put the country in a position where other countries are looking to Belize as an example of how to strengthen their anti-money laundering frameworks to make them more effective, Coye noted. The favorable report bolsters confidence in the jurisdiction, and Belize’s financial institutions can also leverage the stellar results of this latest report to negotiate better terms when they seek to establish new correspondent banking relationships. The private sector may also benefit from increased trust and confidence from regional and international partners, Coye said.

The CFATF found Belize to be substantially effective in five areas of anti-money laundering enforcement and moderately effective in five more areas, with only one area found to have low effectiveness, explained director Leni Ysaguirre McGann, as she detailed the report’s evaluations. Belize’s efforts have been substantially effective in its coordinated actions to ensure that the risks of money laundering and terrorist financing are clearly understood, and in international cooperation. Belize was also found to be substantially effective in investigating terrorist financing offences and activities, and in prosecuting persons who finance terrorism and subjecting them to sanctions. Belize was also largely effective in preventing terrorist organizations and terrorist financiers from raising, moving and using funds, and from abusing non-profit organizations. Belize was also found to be substantially effective in preventing persons and entities involved in the proliferation of weapons of mass destruction from raising, moving and using funds, which was consistent with the United Nations Security Council resolution.

Belizean authorities were found to be moderately effective in appropriately supervising, monitoring and regulating financial institutions, Designated Non-Financial Businesses and Professions, and Virtual Asset Service Providers. Belize’s financial institutions and service providers were found to be moderately effective in applying preventive measures against money-laundering and in countering the financing of terrorism. Belize was also moderately effective in preventing the misuse of legal persons and arrangements for money laundering and financing terrorists, as information about their beneficial ownership arrangements are made available to competent authorities; and these authorities use this financial intelligence and other relevant information appropriately. Belize has also been moderately effective in confiscating the proceeds and instrumentalities of crime.

Belize was found to be less effective in investigating money laundering offences and activities, and in prosecuting and sanctioning offenders. On this score, Ysaguirre-McGann said 92 percent of the jurisdictions reviewed have similar difficulty in investigating money laundering.

The 4th report was a considerable improvement over the 3rd round mutual evaluation report in 2011, when Belize’s lackluster performance was found to be compliant in only two of 49 recommendations from the CFATF, largely compliant with nine, partially compliant with 21 and non-compliant with 17 recommendations. This would have led to Belize being grey-listed in May 2013. Belize had to submit 8 subsequent reports, and it was being evaluated every six months. But due to the slow pace of Belize’s progress towards compliance, Belize was grey listed as a jurisdiction that was non-compliant in countering money-laundering, and by November 2013 other CFATF countries were called upon to consider implementing counter measures against Belize. Belize lost 87 percent of its correspondent banking relationships during this period. The country had to submit eight follow-up reports before Belize was able to exit the grey listing in May 2015.

The National Committee responsible for this successful rating includes the Director of Immigration, the Comptroller of Customs, and the Director of the Belize Tax Service Department, among others.