Belize Country Summary

FATF Status

In May 2015 the Caribbean Financial Action Task Force (CFATF) acknowledged the significant progress made by Belize in improving its AML/CFT regime and notes that Belize has established the legal and regulatory framework to meet its commitments in its agreed Action Plan regarding the strategic deficiencies that the CFATF had identified. Belize is therefore no longer subject to the CFATF ICRG monitoring process.

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Belize was undertaken in 2025. According to that Evaluation, Belize was deemed Compliant for 38 and Largely Compliant for 2 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 5 of the Effectiveness ratings.

Belize faces significant challenges related to crime and corruption, with reports indicating that government enforcement of anti-corruption laws is often ineffective, leading to a culture of impunity. The country is a major hub for drug trafficking and human trafficking, with local gangs exerting control over these illicit markets, while efforts to combat these issues are hampered by corruption within law enforcement and a lack of transparency in governance.

Belize, the smallest economy in Central America, has shown remarkable resilience with a projected GDP of $3.6 billion in 2024, driven primarily by a robust services sector, particularly tourism, which accounts for over 40% of GDP and 60% of foreign currency earnings. The government actively promotes foreign direct investment (FDI) through various incentives, although challenges such as bureaucratic inefficiencies, corruption, and high operational costs continue to deter potential investors. Despite these obstacles, Belize's legal framework generally supports foreign ownership and investment, and recent improvements in its financial regulations have enhanced its standing in the international banking system, although the economy remains vulnerable to external shocks and natural disasters.