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 May 2015 CFATF Plenary recognised that Belize had made significant progress in addressing the deficiencies identified in their 2011 Mutual Evaluation Report and therefore exited the follow-up process.

Belize has addressed the deficiencies noted in the Core and Key Recommendations rated PC/NC (R. 1, 4, 5, 10, 13, 23, 35, 40, SR. I – V) to a level of compliance that is comparable to at least an LC.  

Belize has anticorruption laws that are poorly enforced, with the Integrity Commission lacking the necessary resources to effectively monitor compliance. Despite the existence of regulations and acts aimed at combating corruption, such as the Civil Asset Recovery and Unexplained Wealth Act, there have been no successful prosecutions for unexplained wealth. Businesspeople report that government officials often exploit their positions for personal gain, and there is a general lack of protection for NGOs investigating corruption.

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. Despite a slight increase in public debt to 66.3 percent of GDP, the government has made strides in debt management and encourages foreign direct investment, although challenges such as crime, corruption, and regulatory hurdles persist.

Belize encourages foreign direct investment (FDI) as a means of economic growth, with no explicit restrictions on foreign ownership; however, foreign investments must be registered with the Central Bank of Belize and comply with local regulations. Despite the government's commitment to creating an investor-friendly environment, challenges such as bureaucratic hurdles, corruption, and crime persist, deterring some foreign investors. Recent reforms, including amendments to the Fiscal Incentives Act, aim to enhance investment opportunities, particularly for micro, small, and medium-sized enterprises.