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 has anticorruption laws that are inadequately enforced, with public officials required to disclose financial information but often failing to comply. The Integrity Commission, established to combat corruption, lacks the necessary resources and effectiveness, while the recent Civil Asset Recovery and Unexplained Wealth Act has yet to yield successful prosecutions. Despite existing regulations and international commitments, corruption remains a significant issue, with reports of bribery and misuse of public office by government officials.

Belize has the smallest economy in Central America, with a GDP of $3.1 billion in 2023, reflecting a 4.1 percent growth from the previous year, primarily driven by tourism, construction, and business process outsourcing. The public debt slightly increased to 66.3 percent of GDP in 2022, following a significant reduction from 132 percent in 2020, while the economy remains vulnerable to external shocks and high operational costs in the banking sector.

Belize encourages foreign direct investment (FDI) as a means of economic growth, with no explicit restrictions on foreign ownership. However, investors face challenges such as bureaucratic hurdles, lack of transparency, and concerns over crime and corruption, which can impede business operations. Recent reforms, including amendments to the Fiscal Incentives Act and the Companies Act, aim to improve the investment climate, but foreign investors still report difficulties in navigating the regulatory environment.