Fionza Consulting offers expert assistance for obtaining a Belize Forex License, allowing international clients to engage in financial services within or from Belize. To provide such services in Belize, it is mandatory to obtain a license from the International Financial Services Commission (IFSC), the regulatory authority responsible for overseeing financial companies in the country. Established in 1999, the IFSC ensures that these companies adhere to global standards, maintaining integrity, accountability, and transparency.
Belize Forex License
In 2019, Belize implemented the Economic Substance Act, requiring companies to demonstrate that their primary business activities occur within Belize. This is especially relevant for companies holding a Belize Forex License, as they must ensure that their core income-generating activities are based in Belize. Additionally, license holders must comply with various financial regulations, including the Accounting Records (Maintenance) Act 2013, Mutual Administrative Assistance in Tax Matters Act 2014, and the Income and Business Tax Act. Moreover, they are subject to the Money Laundering and Terrorism (Prevention) Act, Chapter 104.
When is a Belize Forex License Required from the IFSC?
Any Belizean company offering the following services within or from Belize must obtain a license from the IFSC:
- Incorporating or governing IBCs or other offshore businesses
- Incorporating or governing offshore trusts and providing trustee services
- Money brokering
- Money exchange
- Money pawning and lending
- Governing and safeguarding multinational assets
- Money transmission services
- Payment processing services
- Trading in securities, including derivative instruments based on commodities and financial instruments
- Trading in foreign exchange
- Safe custody services
- Accounting services
- Brokerage, consultancy, or advisory services related to the aforementioned services
Minimum Capital Requirement:
To obtain a Belize Forex License, companies must maintain a minimum capital of US$500,000 in their bank account at all times. Additionally, an application fee of US$1,000 and an annual licensing fee of US$25,000 apply.
Economic Substance in Belize:
Belizean companies must ensure economic substance is maintained in Belize.
- Holding an adequate number of board meetings in Belize with records kept in Belize offices.
- Employing a sufficient number of qualified personnel in Belize for forex-related activities.
- Incurring an adequate operating expenditure in Belize.
- Maintaining at least one physical office in Belize.
- Providing sufficient facilities and office space for core business activities.
Companies holding a Belize Forex License must:
- Segregate customer funds into different accounts and possess control over margin securities carried for customers.
- Provide monthly statements to customers, specifying amounts due and payable on demand.
- Refrain from encouraging excessive trading solely for revenue gain.
- Execute transactions on customer behalf only with written authorization.
- Disclose charges for services related to securities trading.
- Collect mandated customer due diligence information.
License holders must report to the IFSC in the following situations:
Receiving customer complaints involving misconduct or financial irregularities.
Becoming a defendant or respondent in criminal, regulatory, or civil proceedings exceeding US$25,000.
Conducting an annual performance review with the IFSC or as required, submitting monthly compliance reports.
Knowledge and Expertise:
Directors of licensed companies must possess the necessary knowledge, experience, and skills to oversee business activities effectively.
Advantages of a Belize Forex License:
- No requirement for a resident director; foreign ownership is allowed.
- Low taxes, with no corporate income tax on foreign-sourced income.
- Quick license issuance, typically taking 1-3 months.
- High levels of confidentiality, with no public disclosure of beneficial owners, shareholders, or directors.
How to Secure a Belize Forex License:
- Step 1: Register a Belizean company with the assistance of Fionza Consulting, including necessary KYC documents.
- Step 2: Open a corporate bank account, which Fionza Consulting will help facilitate.
- Step 3: Prepare and submit the Forex License application to the IFSC, including required documents.
- Step 4: Maintain annual accounting and tax obligations, with Fionza Consulting providing ongoing support.
Overall, securing a Belize Forex License involves careful planning and compliance with regulatory requirements, and Fionza Consulting offers comprehensive guidance throughout the process.