Companies in Belize offer various financial services, from trading in securities to money transfer services, trading in foreign exchange as well as money exchange. The latter is a service that allows clients to exchange their money at competitive rates as well as with beneficial conditions, such as immediate availability or no commissions, as per the company’s actual exchange offer. Buying and selling foreign currencies is a service that is commonly requested, even more so because many foreign investors are interested in Belize company formation.
In order to obtain the international money exchange services licence in Belize, companies will need to apply for it with the International Financial Services Commission (IFSC), as well as comply with the ongoing requirements.
Conditions for the international money exchange services license holder
Investors who open a company in Belize and offer international money exchange services need to comply with the following requirements:
- – Disclosure: the company shall disclose to its customers the charges for the provided services.
- – Addressing complaints: the company is required to promptly address any customer complaints and to maintain the reputation Belize has as a well-regulated jurisdiction.
- – Money exchange report: the company needs to report to the IFSC by the tenth of each month the value of the money exchanged in the previous month.
- – Security: the company will implement measures that will help prevent money laundering as well as terrorist financing.
- – Special transactions: the licensee is required to pay attention to money exchange transactions above 10,000 USD of the equivalent in any other currency.
The Financial Services Commission issues the requirements listed herein.
One of our Belize offshore company formation specialists can provide investors with more information about these conditions, prior to their submission of the license application.
Restrictions for the holder of a money exchange license in Belize
The following list includes some of the most important restrictions for licensees that are engaged in money exchange activities. This is not to say that these companies are prohibited from the following actions, however, they can only be performed with the written approval of the International Financial Services Commission. These are the following:
- Change the company structure: the license holder needs a written approval for entering into a merger, amalgamation or consolidation.
- Asset transfer: the transfer of a substantial portion of the license holder’s assets or liabilities is subject to approval.
- Particularities change: the company can only change its registered name, the one written on the license, with prior approval.
- Other changes: likewise, the company needs approval in order to change the information included in its Articles of Association or Memorandum.
- Have certain customers: the company may accept or keep a Belize resident as its customer for any of the money exchange services only with approval.
One of our agents who specialize in Belize company registration can provide investors with more detailed information about these activities that need prior approval from the authorities. Moreover, the International Financial Services Commission also has the right to approve the changes in the original shareholding, directorate or management structure of the company holding the license.
A company that holds a license for money exchange is required to establish a meeting with the International Financial Services Commission at least once a year. During this meeting, the company’s activity for the previous year will be reviewed and its prospects for the year in course will be discussed.
In order to open a company in Belize that offers money exchange services, investors will need to first incorporate a company as per the local rules.
Investors who open a company in Belize have access to a favorable business climate and the absence of corporate taxes. Below, we highlight some of the statistics for investments in Belize.
According to a recent Business establishment survey, there were 4,154 businesses from different economic sectors (except for banking and insurance). Below, we highlight the number of companies for some of these sectors:
- – 21 establishments in the finance sector in Belize;
- – 121 companies in the administrative and support services sector;
- – 53 in the information and communication sector.
Contact our Belize company formation specialists for more details about obtaining special permits and licenses, like the international money exchange service license, as well as others.
Our lawyers in Belize offer legal counsel and guidance to investors who wish to know more about licensing and the relevant laws applicable to the business field in which their company operates. We can also answer important questions about other legal issues, including but not limited to contract law, employment, intellectual property law, and more. You can reach out to us for more information.