Belize
- Superior Trust Protection

The fastest-growing area of the Belize economy has been the service sector, particularly ‘offshore’ activities, including the banking sector and shipping register. However, these have started to cause political difficulties for the Belizean government. In June 2000, Belize was identified by the Organization for Economic Cooperation and Development (OECD) – the world’s 30 wealthiest economies – as one of 35 ‘tax havens’ whose financial laws are believed to encourage large-scale tax evasion and money laundering. The government has since taken measures to meet the OECD’s demands.

The regulatory framework governing the supervision and regulation of banks and other financial institutions in Belize consists of various laws including the Central Bank Act, the Banks and Financial Institutions Act and Regulations, the International Banking Act, the Money Laundering (Prevention) Act, Regulations and Guidance Notes, and the Financial Intelligence Unit Act. These, along with circulars, provide a comprehensive framework through which the important function and role of these financial intermediaries can be efficiently and prudently carried out.

Belize now offers a full menu of investment vehicles designed to meet the needs of sophisticated investors around the world. As the range of services has widened, Belize has become a more convenient place to do business. It has truly become a 'full service' jurisdiction - 'a One-Stop Shop' (as it were).

While developing its Offshore sector, Belize has not overlooked the fact that the offshore vehicles may be used by unscrupulous elements to launder the proceeds of drug trafficking or other illicit activities. Simultaneously with the enactment of the Offshore Banking Act in 1996, Belize also passed the Money Laundering (Prevention) Act which established mechanisms and procedures to ensure that the country's financial institutions are not used to disguise the source of illicit funds. This Act is central to the country's strategy to develop a reputable and viable offshore services sector. It is virtually an 'all crimes' law and is not limited to drug related offences. The definition of 'money laundering' is extremely wide and covers 'engaging, directly or indirectly, in a transaction that involves property that is the proceeds of crime, disguising, disposing of or bringing into Belize any property that is the proceeds of crime, knowing or having reasonable cause for believing the same to be the proceeds of crime.'

Belize's banking sector (including offshore banking) is regulated by the Central Bank of Belize, while the non-banking sector falls within the jurisdiction of the International Financial Services Commission (IFSC) established in 1999.


International Business Companies (IBC)

In 1990, Belize enacted the International Business Companies Act based on the British Virgin Islands model. In a short space of ten years, Belize has registered more than 15,000 IBC's. Belize's IBC legislation is viewed internationally as one of the most modern and user-friendly. It is particularly designed with the offshore investor in mind. A Belizean IBC is an ideal corporate vehicle for international financial transactions and allows the investor to engage in a wide variety of activities ranging from asset protection to operating bank accounts, brokerage accounts, ship ownership, commission arrangements and various other commercial transactions.

Taxation: A Belize IBC is exempted from all taxes. An Annual Government Fee must be paid to keep the IBC in good standing. These fees are payable by the 31st May starting from the second year of incorporation.

Directors and Shareholders: A minimum of one (1) director and shareholder are required. These can be the same person. They can also be physical persons or a corporate entity. The names of the Directors or Shareholders are not a part of the public records.

Books & Records: A register of shares has to be kept and updated by the company. No accounts or information pertaining to the identity of shareholders or directors is required to be filed in the Registry. Nor is the IBC's share register and other records open to inspection other than by its shareholders or by order of the Court upon the application of a shareholder. Nominee shareholders and directors are allowed. Nominee shareholder and director services are offered by Registered Agents. Memorandum and Articles of Association are the only public filings.

Accounts & Reports: No requirement for keeping or filing annual accounts and/or reports is necessary.


Trusts

The IBC legislation was supplemented in 1992 with the enactment of a Trusts Act which provides for both onshore and offshore trusts. Universally acknowledged as one of the best in the field, Belize's trust law contains provisions that are specialty designed to meet the needs of differing and diverse cultures and religions.


Offshore Banking / International Banking

Belize further expanded its offshore sector in 1996 with the passing of the Offshore Banking Act. This provides for two categories of offshore banking licences - the Unrestricted "A" Class and the Restricted "B" Class licence. The holder of a "B" Class licence maintains lesser capital and is restricted to conducting certain limited business activities only.

On 7 October 2002, the Offshore Banking (Amendments) Act 2002 was enacted to change the name of the Offshore Banking Act and offshore banks to International Banking Act (IBA) and international banks, respectively. The amendments also strengthen the supervisory and investigative powers of the CBB to meet international standards, to provide better transparency and exchange of information with respect to international banking and to empower the CBB to grant licenses for international banking. The minimum capital standards were raised, requiring an international bank with an “A” class-unrestricted license to start with a minimum capital of US$3,000,000 for a local company and US$25,000,000, for a foreign bank. A “B” class-restricted licenses for an international bank now requires minimum capital of US$1,000,000, in the case of a local company, and US$15,000,000, in the case of a foreign bank. Since the passage of the IBA, CBB has processed over thirty international banking applications but has only granted seven licenses. The following Circulars were issued by the CBB.
www.centralbank.org.bz


Maritime

The International Merchant Marine Registry of Belize (IMMARBE) is under the Ministry of Finance, with its Head Office located in Belize City. The Registration of Merchant Ships Act, 1989 as amended in 1996 governs the merchant fleet. It facilitates and controls all registrations. The Registry operates through a network of Designated Offices worldwide. These offices are empowered to process applications for registration and to issue the relevant documentation. Belize has been included in the IMO White List and the Registry has attained ISO 9001-2000 Certification by ANSI-RAB. On 23rd March 2006, IMMARBE received official notification from the United States Coast Guard that it has qualified for its Quality Shipping for 21st Century (QUALSHIP 21) Program. Belize is 1 of 9 out of 166 flag states in the world holding this qualification in 2006 and the only one in Central America.
www.immarbe.com


The Central Bank of Belize

The Central Bank of Belize was established on 1st January 1982 by the Central Bank of Belize Act No. 15 (Chapter 262 of the Laws of Belize Revised Edition 2000). Similar to other Central Banks in the English speaking Caribbean, the Central Bank of Belize is modeled on the Bank of England and its functions include providing banking services to the Government of Belize and financial institutions, issuing the domestic currency, regulating commercial banks and other financial institutions, providing economic advice to the Government, conducting research and publishing information on monetary and other economic developments.
www.centralbank.org.bz


Michael Ashcroft

Michael Ashcroft, a wealthy British entrepreneur was the driving force behind Belize’s newly developed ‘offshore’ finance industry. He also controls a significant portion of the financial sector, as well as key parts of Belize’s economic infrastructure. Mr Ashcroft had arrived in the small former British colony at the beginning of the 1990s. He moved many of his interests there and bought control of the largest local bank, the Belize Bank (www.belizebank.com), and encouraged local politicians to pass laws between 1990 and 1992 which set up flags of convenience, and secretive offshore "international business companies" and trusts, in return for paying annual registration fees to the government.
www.lordashcroft.com


The History of Belize Bank Limited

The Belize Bank Limited carries a tradition of excellence in service as the first and oldest continuous banking operation in Belize.

The Bank of British Honduras was incorporated in December 1902 and opened for business in 1903. In 1912, its operations were purchased by the Royal Bank of Canada beginning the second era of operations which lasted until 1987. In April of 1987, the Royal Bank operations were purchased by the Belize Bank, a group of local investors, commencing the third era of Belize's longest uninterrupted banking operation totaling over 100 years of service to Belize.

The Belize Bank values its tradition of service, built on sound banking experience and the highest ethical standards. With over 710 million dollars in assets, 122 million dollars of capital reserves and a track record of consistent growth, the Belize Bank is a pillar of strength, stability and integrity in the Belizean economy.

With almost 50% market share in a banking industry comprised of 5 banks, and the only branch network covering the entire country, the Belize Bank continues to be the leader in an increasingly sophisticated and competitive banking environment.
www.belizebank.com

Central Bank of Belize International Merchant Marine Registry of Belize The Belize Bank

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