Archive for the ‘Offshore banking’ Category

Belize passed bill on CFATF issue

Saturday, February 15th, 2014

Last week, among the bills passed in the House of Representatives, there was the bill addressing the issue by the Caribbean Financial Action Task Force (CFATF). In November 2013, it was said that Belize and Guyana would be blacklisted for non-compliance in addressing deficiencies in their legislation on money laundering and offshore banking. It was recognized by the CFATF that, despite some steps had been taken, Belize jurisdiction has not done enough to improve the situation with the Anti-money Laundering and Combating the Financing of Terrorism.

The Prime Minister of Belize sought the approval of the House to pass the new bill before the meeting of the CFATF, and in this case the Opposition supported the government. The Leader of the Opposition stated: “There is our response as we got knowledge response to the international pressure which is real” … “which will inevitably lead to, in my view, the complete undermining of the offshore sector, the offshore industry in Belize, which is exactly perhaps what is intended.”

Republic Bank on Belize blacklisting

Friday, December 20th, 2013

A regional anti-money laundering body has called on Caribbean countries to consider implementing counter measures in order to protect their financial systems from the ongoing risks of money laundering and terrorist financing emanating from Belize.

The counter measures, which amount to a financial blacklisting of the jurisdiction, will mean that all financial transactions between T&T and Belize will be placed under much greater scrutiny, and it is possible that wire transfers and other payments would be delayed or denied.

To comment on the impact of the counter measures on trade and payments between T&T and Belize, Republic Bank executive director, Nigel Baptiste, said: “These measures will undoubtedly negatively affect trade and payments between the countries as the enhanced monitoring will result in longer turnaround time, higher costs and possibly the refusal of accepting payments where information requirements are not met.”

The virtual blacklisting of Belize is a directive of the Caribbean Financial Action Task Force (CFATF), an organisation comprising 29 jurisdictions in the Caribbean Basin region.

Standard & Poor’s cuts CDB credit rating

Friday, June 15th, 2012

On June 12, Standard & Poor’s Ratings Services lowered its long-term issuer credit rating on the Caribbean Development Bank (CDB) to ‘AA+’ from ‘AAA’ and affirmed the short-term ‘A-1+’ rating. The bank’s outlook is stable.

According to S&P, the downgrade reflects the agency’s view that CDB’s risk management is not commensurate with other ‘AAA’ rated multilateral lending institutions, particularly given its size and regional economic weakness.

Caribbean Development Bank has failed to comply with one of its internal liquidity policy guidelines, and borrower concentration remains high. It was announced by Standard & Poor’s Ratings Services that the CDB’s liquidity was tighter in 2011 than in previous years.

Belize Government signs 2 Loan Contracts with the IDB

Wednesday, April 20th, 2011

On April 19, 2011, the Government of Belize and the Inter-American Development Bank (IDB) signed 2 loan contracts each in the amount of USD 5 million for the financing of projects.

The documents are related with project financing in the following areas:
– Community Action for Public Safety Programme (CAPS) aimed at efforts that will
reduce youth involvement in major violent crimes in Belize City;
– Integrated Water and Sanitation Programme for the Placencia Peninsula aimed to provide and
increase access to wastewater-treatment through the development of a new Sewage Collection,
Treatment and Disposal System on the Placencia Peninsula.

Both Projects are to commence in the 3rd quarter of 2011.

Signing on behalf of the Government of Belize was the Hon. Dean Barrow, Prime Minister and Minister of Finance. IDB Representative in Belize, Ms. Caroline Clarke, signed on behalf of the IDB.

When signing the contracts, Barrow expressed his sincere appreciation to the President, Executive Directors and Senior Management of the Bank, as well as technical staff of both the Bank and the Government who worked diligently to bring both projects to an early approval.

Clarke said: “The IDB is pleased to be partner in the development of Belize and to have the opportunity to support the strategies of the Government to promote public safety and is also happy to be able to contribute to development of critical wastewater infrastructure with the residents of the Placencia Peninsula”.