_________________________________________________________
AML News / Updates
September 19, 2011 - Belize included in International Narcotics Control
Majors list
Read Press Release
October 27, 2010 - Belize uplifted to OECD implementation of tax
standard white list.
View current list.......
Links:
Worldwide AML Legislation (International Bar Association)
AML News / Updates
September 19, 2011 - Belize included in International Narcotics Control
Majors list
Read Press Release
October 27, 2010 - Belize uplifted to OECD implementation of tax
standard white list.
View current list.......
Links:
Worldwide AML Legislation (International Bar Association)
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Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2012:
Belize is not a major regional financial center but, in an attempt to
diversify its economic activities, authorities have encouraged the
growth of offshore financial activities that are vulnerable to money
laundering, including offshore banks, insurance companies, trust
service providers, mutual fund companies, and international
business companies. Belize has pegged the Belizean dollar to the
U.S. dollar and continues to offer financial and corporate services
to nonresidents in its offshore financial sector.
Belize is a transshipment point for marijuana, cocaine, and
precursor chemicals for methamphetamines. Money laundering
proceeds are related to proceeds from the trafficking of illegal
narcotics, psychotropic substances, and chemical precursors, and
they are controlled by drug trafficking organizations and
organized criminal groups.
Belizean officials suspect that money laundering occurs at a
significant level in Belize. Belizean officials believe the large
Corozal Commercial Free Zone (CFZ) that operates at the border
with Mexico is involved in trade based money laundering. Casinos
and on-line gaming are legal but authorities acknowledge they are
under-regulated which may pose a money laundering risk.
Do Financial Institutions engage in currency transactions related
to international narcotics trafficking that include significant
amounts of US currency; currency derived from illegal sales in the
U.S.; or that otherwise significantly affect the U.S.: No
Criminalization of Money Laundering:
“All serious crimes” approach or “list” approach to predicate
crimes: Both
Legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: YES
KYC covered entities: Domestic and offshore banks; venture risk
capital; money broker, exchange and transmission services;
moneylenders and pawnshops; insurance; real estate; credit
unions and building societies; trust and safekeeping services;
casinos; motor vehicle dealers; jewelers; international financial
service providers; attorneys and notaries public; and accountants
and auditors
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 76, January 1 through
October 24, 2011
Number of CTRs received and time frame: Not applicable
STR covered entities: Domestic and offshore banks; venture risk
capital; money broker, exchange and transmission services;
moneylenders and pawnshops; insurance; real estate; credit
unions and building societies; trust and safekeeping services;
casinos; motor vehicle dealers; jewelers; international financial
service providers; attorneys, notaries public, accountants &
auditors
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: Two - January 1 through October 24, 2011
Convictions: Two - January 1 through October 24, 2011
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Belize is a member of the Caribbean Financial Action Task Force
(CFATF), a Financial Action Task Force (FATF)-style regional
body. Its most recent mutual evaluation can be found here:
http://www.cfatf-gafic.
org/downloadables/mer/Belize_3rd_Round_MER_(Final)_
(English).pdf
Enforcement and implementation issues and comments:
Belize lacks the resources and political will to effectively enforce
anti-money laundering rules. Belize’s financial intelligence unit
(FIU) has a broad mandate and a small staff. The FIU staff has
limited training or experience in identifying, investigating,
reviewing, and analyzing evidence in money laundering cases.
There were credible reports of at least one investigation being
halted because of political pressure on the FIU. Prosecutors and
judges also need additional training on financial crimes, including
money laundering. Belize should implement an arrangement for
asset sharing to provide additional resources to the FIU.
Belize should significantly strengthen its laws and regulations on
financial information systems, beneficial ownership, customer due
diligence and wire transfers in line with international standards
and recommendations. Belize should undertake a review of
whether it is appropriate to implement a large currency
transaction reporting regime.
While it is widely believed that abuse occurs within the offshore
sector and in the free trade zones (FTZ), no one from these
organizations has been charged with a financial crime. Belize
should require the FTZ companies to be reporting entities.
The Government of Belize should become a party to the UN
Convention against Corruption.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
In 2011, the United States added Belize to the list of Major Illicit
Drug Transit or Major Illicit Drug Producing Countries. Belize was
susceptible to the transshipment of illegal drugs due to its position
along the Central American isthmus between the United States,
Mexico, and the drug-producing countries of South America.
Large stretches of unpopulated jungles on its borders with
Guatemala and Mexico, and a relatively unpatrolled coastline that
includes hundreds of small islands and atolls, made controlling
the territory difficult in 2011. The remote jungles of Belize
provided a hospitable environment for growing cannabis. Drug
trafficking and related crimes increasingly threatened the stability
of Belize.
Belize generally tolerated the use of cannabis. Drug possession
penalties included a $5,000 fine for first-time offenses and, albeit
infrequently, a three-year prison sentence for second offenses.
Crack cocaine was the second most abused drug in Belize
according to a 2008 Central American Integration System (SICA)
study, a finding re-validated by the National Drug Abuse Council
in 2011. Synthetic drugs were not widely used or manufactured in
Belize, although precursor chemicals transited Belize en-route to
Mexico.
Despite enhanced efforts to monitor coastal waters, limited funds,
equipment, and personnel hampered the Belize Coast Guard
(BCG) and the Anti-Drug Unit (ADU). Belize’s counternarcotics
efforts were limited by corruption and deficiencies in intelligence
gathering and analysis, the judicial sector, and political will. Belize
is a party to the 1988 UN Drug Convention.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Belize is a source, destination, and transit country for men,
women, and children subjected to sex trafficking and forced labor.
A common form of trafficking in Belize is the coerced prostitution
of children, particularly situations in which poor parents push their
school-aged children to provide sexual favors to wealthy older
men in exchange for school fees, money, and gifts. Child sex
tourism, involving primarily U.S. citizens, has been identified as an
emerging trend in Belize. Additionally, sex trafficking and forced
labor of Belizean and foreign women and girls occurs in bars,
nightclubs, and brothels throughout the country. Foreign men,
women, and children, particularly from Guatemala, Honduras, El
Salvador, Mexico, and Asian countries migrate voluntarily to
Belize in search of work; some may fall victim to sex trafficking or
forced labor. Children and adults working in the agricultural and
fishing sectors in Belize are vulnerable to forced labor. Forced
labor has been identified in the service sector amongst the South
Asian and Chinese communities of Belize, primarily in restaurants
and shops with owners from the same country. There reportedly
has been at least one case of a Belizean citizen in forced
domestic service in the United States during the reporting period.
The Government of Belize does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. While the government has not
successfully prosecuted a trafficking offender for over five years,
the government increased prosecutions of trafficking offenders,
identified more human trafficking victims, and conducted an
awareness campaign in several languages. The Belizean
government demonstrated impressive efforts to forge and expand
partnerships with NGOs during the reporting period to address
child sex trafficking, a form of human trafficking that is a taboo
subject in much of the Caribbean region. The government
arrested a police officer in relation to a human trafficking case,
though it did not convict or sentence any officials complicit in sex
trafficking or forced labor; lack of accountability for trafficking
offenders, especially complicit officials, remained a significant
obstacle to effective anti-trafficking reforms.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
In 2009, the Government of Belize began receiving funding
through the Merida Initiative. While counterterrorism is not Merida’
s primary objective, Merida’s work in Belize continued to improve
Belize’s border security. Belize participated in an assessment of
its northern and western borders by a team from U.S. Customs
and Border Protection. This assessment included training on how
to identify suspicious vehicles and individuals, and on the use of
contraband detection kits. The United States gave Belize eight of
these kits in 2009.
Belize’s borders are extremely porous and there is a significant
corruption problem among Immigration and Customs officers,
particularly on the western and northern borders. It remained
easy to change identity by purchasing stolen passports. Laws
governing name changes were extremely lax. The country is
sparsely populated and has limited human and technological
resources to monitor individuals and groups residing in or
transiting through its borders.
The Belize Defense Force (1025 total personnel) has operated a
Counterterrorism Platoon for three years to perform operations
within Belize and its territorial waters.
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2012:
Belize is not a major regional financial center but, in an attempt to
diversify its economic activities, authorities have encouraged the
growth of offshore financial activities that are vulnerable to money
laundering, including offshore banks, insurance companies, trust
service providers, mutual fund companies, and international
business companies. Belize has pegged the Belizean dollar to the
U.S. dollar and continues to offer financial and corporate services
to nonresidents in its offshore financial sector.
Belize is a transshipment point for marijuana, cocaine, and
precursor chemicals for methamphetamines. Money laundering
proceeds are related to proceeds from the trafficking of illegal
narcotics, psychotropic substances, and chemical precursors, and
they are controlled by drug trafficking organizations and
organized criminal groups.
Belizean officials suspect that money laundering occurs at a
significant level in Belize. Belizean officials believe the large
Corozal Commercial Free Zone (CFZ) that operates at the border
with Mexico is involved in trade based money laundering. Casinos
and on-line gaming are legal but authorities acknowledge they are
under-regulated which may pose a money laundering risk.
Do Financial Institutions engage in currency transactions related
to international narcotics trafficking that include significant
amounts of US currency; currency derived from illegal sales in the
U.S.; or that otherwise significantly affect the U.S.: No
Criminalization of Money Laundering:
“All serious crimes” approach or “list” approach to predicate
crimes: Both
Legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: YES
KYC covered entities: Domestic and offshore banks; venture risk
capital; money broker, exchange and transmission services;
moneylenders and pawnshops; insurance; real estate; credit
unions and building societies; trust and safekeeping services;
casinos; motor vehicle dealers; jewelers; international financial
service providers; attorneys and notaries public; and accountants
and auditors
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 76, January 1 through
October 24, 2011
Number of CTRs received and time frame: Not applicable
STR covered entities: Domestic and offshore banks; venture risk
capital; money broker, exchange and transmission services;
moneylenders and pawnshops; insurance; real estate; credit
unions and building societies; trust and safekeeping services;
casinos; motor vehicle dealers; jewelers; international financial
service providers; attorneys, notaries public, accountants &
auditors
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: Two - January 1 through October 24, 2011
Convictions: Two - January 1 through October 24, 2011
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Belize is a member of the Caribbean Financial Action Task Force
(CFATF), a Financial Action Task Force (FATF)-style regional
body. Its most recent mutual evaluation can be found here:
http://www.cfatf-gafic.
org/downloadables/mer/Belize_3rd_Round_MER_(Final)_
(English).pdf
Enforcement and implementation issues and comments:
Belize lacks the resources and political will to effectively enforce
anti-money laundering rules. Belize’s financial intelligence unit
(FIU) has a broad mandate and a small staff. The FIU staff has
limited training or experience in identifying, investigating,
reviewing, and analyzing evidence in money laundering cases.
There were credible reports of at least one investigation being
halted because of political pressure on the FIU. Prosecutors and
judges also need additional training on financial crimes, including
money laundering. Belize should implement an arrangement for
asset sharing to provide additional resources to the FIU.
Belize should significantly strengthen its laws and regulations on
financial information systems, beneficial ownership, customer due
diligence and wire transfers in line with international standards
and recommendations. Belize should undertake a review of
whether it is appropriate to implement a large currency
transaction reporting regime.
While it is widely believed that abuse occurs within the offshore
sector and in the free trade zones (FTZ), no one from these
organizations has been charged with a financial crime. Belize
should require the FTZ companies to be reporting entities.
The Government of Belize should become a party to the UN
Convention against Corruption.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
In 2011, the United States added Belize to the list of Major Illicit
Drug Transit or Major Illicit Drug Producing Countries. Belize was
susceptible to the transshipment of illegal drugs due to its position
along the Central American isthmus between the United States,
Mexico, and the drug-producing countries of South America.
Large stretches of unpopulated jungles on its borders with
Guatemala and Mexico, and a relatively unpatrolled coastline that
includes hundreds of small islands and atolls, made controlling
the territory difficult in 2011. The remote jungles of Belize
provided a hospitable environment for growing cannabis. Drug
trafficking and related crimes increasingly threatened the stability
of Belize.
Belize generally tolerated the use of cannabis. Drug possession
penalties included a $5,000 fine for first-time offenses and, albeit
infrequently, a three-year prison sentence for second offenses.
Crack cocaine was the second most abused drug in Belize
according to a 2008 Central American Integration System (SICA)
study, a finding re-validated by the National Drug Abuse Council
in 2011. Synthetic drugs were not widely used or manufactured in
Belize, although precursor chemicals transited Belize en-route to
Mexico.
Despite enhanced efforts to monitor coastal waters, limited funds,
equipment, and personnel hampered the Belize Coast Guard
(BCG) and the Anti-Drug Unit (ADU). Belize’s counternarcotics
efforts were limited by corruption and deficiencies in intelligence
gathering and analysis, the judicial sector, and political will. Belize
is a party to the 1988 UN Drug Convention.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Belize is a source, destination, and transit country for men,
women, and children subjected to sex trafficking and forced labor.
A common form of trafficking in Belize is the coerced prostitution
of children, particularly situations in which poor parents push their
school-aged children to provide sexual favors to wealthy older
men in exchange for school fees, money, and gifts. Child sex
tourism, involving primarily U.S. citizens, has been identified as an
emerging trend in Belize. Additionally, sex trafficking and forced
labor of Belizean and foreign women and girls occurs in bars,
nightclubs, and brothels throughout the country. Foreign men,
women, and children, particularly from Guatemala, Honduras, El
Salvador, Mexico, and Asian countries migrate voluntarily to
Belize in search of work; some may fall victim to sex trafficking or
forced labor. Children and adults working in the agricultural and
fishing sectors in Belize are vulnerable to forced labor. Forced
labor has been identified in the service sector amongst the South
Asian and Chinese communities of Belize, primarily in restaurants
and shops with owners from the same country. There reportedly
has been at least one case of a Belizean citizen in forced
domestic service in the United States during the reporting period.
The Government of Belize does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. While the government has not
successfully prosecuted a trafficking offender for over five years,
the government increased prosecutions of trafficking offenders,
identified more human trafficking victims, and conducted an
awareness campaign in several languages. The Belizean
government demonstrated impressive efforts to forge and expand
partnerships with NGOs during the reporting period to address
child sex trafficking, a form of human trafficking that is a taboo
subject in much of the Caribbean region. The government
arrested a police officer in relation to a human trafficking case,
though it did not convict or sentence any officials complicit in sex
trafficking or forced labor; lack of accountability for trafficking
offenders, especially complicit officials, remained a significant
obstacle to effective anti-trafficking reforms.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
In 2009, the Government of Belize began receiving funding
through the Merida Initiative. While counterterrorism is not Merida’
s primary objective, Merida’s work in Belize continued to improve
Belize’s border security. Belize participated in an assessment of
its northern and western borders by a team from U.S. Customs
and Border Protection. This assessment included training on how
to identify suspicious vehicles and individuals, and on the use of
contraband detection kits. The United States gave Belize eight of
these kits in 2009.
Belize’s borders are extremely porous and there is a significant
corruption problem among Immigration and Customs officers,
particularly on the western and northern borders. It remained
easy to change identity by purchasing stolen passports. Laws
governing name changes were extremely lax. The country is
sparsely populated and has limited human and technological
resources to monitor individuals and groups residing in or
transiting through its borders.
The Belize Defense Force (1025 total personnel) has operated a
Counterterrorism Platoon for three years to perform operations
within Belize and its territorial waters.
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| Last Updated: 16 April 2012 |