BELIZE HITS NEW MILESTONE IN AML/CFT COMPLIANCE

*BELIZE HITS NEW MILESTONE IN AML/CFT COMPLIANCE

The Caribbean Financial Action Task Force (CFATF) recognizes the tremendous strides Belize
has made in strengthening its regime for anti-money laundering and combating the
financing of terrorism (AML/CFT) and concluded that Belize no longer poses a risk to the
international financial system. At the recently concluded CFATF Plenary, member countries
unanimously agreed that Belize had made sufficient progress to be considered eligible to
exit the follow-up process. This decision signals a remarkable achievement by the
Government of Belize and relevant stakeholders in demonstrating a high level of compliance
with international standards.

CFATF is an organisation of 27 jurisdictions of the Caribbean Basin Region, which have all
agreed to implement the international standards for AML/CFT, the Financial Action Task
Force Recommendations (FATF Recommendations). Since 2011, Belize has been working
closely with CFATF to address the deficiencies identified in Belize’s AML/CFT regime. Those
efforts were redoubled when, in November 2013, CFATF issued a Public Statement
identifying Belize as having strategic deficiencies in its AML/CFT regime.

Since that time, Belize worked tirelessly, bringing together technical capacity and strong
political will, to remedy the situation described by CFATF. In recognition of Belize’s efforts,
CFATF issued a positive Public Statement on May 29th, 2014, indicating that Belize no longer
posed a risk to the international financial system. However, additional work and continued
improvement was still needed.

Overall, government and opposition came together to enact 16 pieces of legislation related
to the AML/CFT regime. Government has also put various administrative measures in place
to ensure the effective implementation of measures designed to combat money laundering
and the financing of terrorism. Upon analysis of the legislation and measures taken, CFATF
determined that Belize had made substantial progress and successfully remedied the
weaknesses specified by CFATF assessors. CFATF’s 7th Follow-Up Report on Belize can be
found at https://www.cfatf-gafic.org/index.php/member-countries/a-d/belize and on the FIU
website https://fiubelize.org/.

These measures and the recommendation by CFATF to initiate the procedures to exit the
follow-up process represent a significant milestone in meeting Belize’s obligations as a
member of CFATF and strengthening its role in the international financial system. However,
despite the progress made to date, the Belize Delegation to CFATF and the National Antimoney
Laundering Committee advise that this milestone does not mark the completion of
Belize’s efforts. Implementation must continue and current enforcement measures need to
be enhanced. Compliance and supervision of both financial services and designated nonfinancial
businesses and professions will continue to be crucial, as will matters of national
and international co-operation, co-ordination and mutual legal assistance. In the coming
months, Belize will engage the process necessary to exit CFATF follow-up. This process will
include rigorous assessment of effectiveness of the measures put in place. In May 2015,
CFATF assessors will publish a report indicating whether Belize has been successful in
accomplishing its efforts to implement a robust AML/CFT regime.

In spite of recent successes, Belize must strive to demonstrate its continuing commitment
to the fight against money laundering and terrorist financing. Exiting the 3rd Round Mutual
Evaluation process will be a strong start and commencing efforts to ensure full compliance
with new elements of the FATF Recommendations for the 4th Round will send a clear
message that Belize is serious about the role it plays in that fight.