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BELIZE:

INTERNATIONAL FINANCIAL SERVICES COMMISSION(AMENDMENT) ACT, 2019

ARRANGEMENT OF SECTIONS

1. Short title.

2. Amendment of section 2.



5. Insertion of new section 7A.

6. Insertion of new section 23A.


8. Insertion of new sections 29 to 39.

9. Transitional.

No. 2] International Financial Services Commision 7

AN ACT to amend the International Financial ServicesCommission Act, Chapter 272 of the SubstantiveLaws of Belize, Revised Edition 2011; to strengthenthe provisions relating to international financialservices;to set the criteria for physical presence ofpersons licensed by the International FinancialServices Commission as well as for internationalbusiness companies; and to provide for mattersconnected therewith or incidental thereto.

(Gazetted 30th March, 2019.)

1. This Act may be cited as the

INTERNATIONAL FINANCIAL SERVICESCOMMISSION (AMENDMENT) ACT, 2019,

Short title.

No. 2 of 2019

I assent,

(SIR COLVILLE N. YOUNG)Governor-General

27th March, 2019.

and shall be read and construed as one with the InternationalFinancial Services Commission Act, which, as amended,ishereinafter referred to as the principal Act.

2. The principal Act is amended in section 2 asfollows –

(1) In subsection (1), as follows –

(a) in the definitiion of “IFS Practitioner”delete the words “and Belize InternationalServices Limited”;

(b) byinserting the following defined termsand definitions in the proper alphabeticalorder –

““managing agent”means the personlicensed by the Commission under section7 to perform the duties set out in section7A;

“managing services” means the businessof providing or holding oneself out asproviding services required of a managingagent pursuant to section 7A of this Act,where such businesses are conducted inBelize;

“Service Agreement” means the agreementbetween a managing agent and an IFSpractitioner made in accordance with section7A;”.

(2) By inserting a new subsection (3), as follows –

“(3) Without limiting the authority of theCommission to implement the requirementfor an international business company to

8 International Financial Services Commision [No. 2

Amendment ofsection 2.

Cap. 272.No.15 of 2013.No. 4 of 2018.

be physically present, any reference inthis Act to physical presence shall beconstrued in accordance with section82B of the International BusinessCompanies Act, Chapter 270.”

3. The principal Act is amended in section 6 asfollows –

(1) in subsection (2) as follows –

(a) in paragraph (aa) by inserting after theword “services” the words “or managingservices”; and

(b) by inserting immediately after paragraph(aa) new paragraphs (ab) to (af) asfollows –

“(ab) grant licences, permits, approvalsor authorities enabling persons toact as managing agents;

(ac) determine the terms, conditions andlimitations of licences issued to IFSPractitioners additional to thoseprovided for in section 32(1), butnot in a manner inconsistent withthis Act or the regulations;

(ad) determine the terms, conditions andlimitations of licences issued topersons to act as managing agentsadditional to those provided for insection 32(2), but not in a mannerinconsistent with this Act or theregulations;



(ae) undertake any review necessary toensure comliance with the Act;

(af) identify breaches and penalties andset the procedures for investigationand determination of allegedbreaches, for which administrativesanctions pursuant to section 33may be imposed;

(ag) set guidelines, procedures orprescribe any matter or thingrequired by the Commission underthe International BusinessCompanies Act, Chapter 270.”.

(2) by inserting a new subsection (3), asfollows –

“(3) The Commission may –

(a) by administrative notice in writing,specify the mode of fulfillment ofthe requirement to be physcallypresent and may specify categoriesof international financial servicesfor which persons holding a validlicence granted by it must complywith a specific mode of fulfillment;

(b) cause any administrative noticeissued under paragraph (a) to beprinted and distributed and maymake such arrangements as itthink fit for its distribution.”.

4. The principal Act is amended in section 7 asfollows -



(a) in the marginal note by inserting after the word“services” the words “and managing services”;

(b) bydeleting subsection (1) and substituting thefollowing -

“(1) Notwithstanding any other Act, rule,regulation or law to the contrary -

(a) no person shall provide, carry on,transact or hold himself out asproviding, carrying on, ortransacting any of the internationalfinancial services in or from withinBelize unless that persons holds avalid licence granted by theCommission under this Act; and

(b) no person shall provide, carry on,transact or hold himself out asproviding, carrying on, ortransacting any managing servicesunless that person holds a validlicence granted by the Commissionunder this Act.”;

(c) in subsection (2) by –

(i) deleting the word “five” andsubsti tut ing the word “onehundred”; and

(ii) deleting the word “twenty” andsubstituting the words “twohundred”.

(d) in subsection (5) by deleting the words“international financial services” and


substituting the words “either internationalfinancial services or managing services”;

(e) in subsection (6) by inserting after the word“services” the words “or for managingservices”;

(f) by deleting subsection (7) and substituting thefollowing -

“(7) Subject to subsection (8) below -

(a) every l icence granted forinternational financial services shallbe valid for a period of at least 3years commencing 1st January ofthe year in which it is issued andshall be subject to renewal; or

(b) every licence granted for managingservices shall be valid for a periodof at least 3 years commencing 1stJanuary of the year in which it isissued and shall be subject torenewal.”

(g) by inserting after subsection (7)the followingnew subsections (7A) to (7E) –

“(7A) Everylicence granted under this section –

(a) shall state the duration of a licence;

(b) maybe for a fixed period notexceeding 3 years;

(c) expires if the holder of the licenceceases to be a person eligibleunder this Act to apply for thelicence;


(d) if issued for a fixed period may berenewed periodically in accordancewith subsection (7B);

(e) may be varied in accordance withsubsection (7C); or

(f) may be requested by theCommission for the reasons statedin subsection (7D).

(7B) For the purposes of subsection (7A)(d) –

(a) an application for a renewal shallbe made in writing to the DirectorGeneral in the first instance andmust be accompanied by theprescribed fee;

(b) if the Commission is satisfied thatthe applicant continues to meet therequirements for the issue of alicence, the Commission shallrenew the licence;

(c) if an application for the renewal ofa licence has been made before theexpiry of the licence but has notbeen dealt with by the Commissionwhen the licence is due to expire,the licence continues in force untilthe application for renewal is dealtwith and any renewal in such acase shall be taken to havecommenced from the day whenthe licence would have expired butfor the renewal.


(7C) For the purposes of subsection (7A)(e) –

(a) the Commission, having informedthe licence holder of its intendedcourse of action and having offeredthem reasonable opportunity to beheard or to make writ tenrepresentations, may at any time –

(i) vary the duration of thelicence; or

(ii) vary, add to, or removeterms, condit ions orlimitations of the licence; or

(iii) attach conditions to thelicence.

(b) if the Commission considers thatthe licence ought to be amended,it shall give the holder of thelicence a written notice of showcause which –

(i) sets out the proposed amend-ment; and

(ii) states the reasons for theproposed amend-ment; and

(iii) invites the holder to showwithin 21 days why thel icence should not beamended.

(c) the Commission may amend thelicence if, after considering allrepresentations made within 21


days, it considers that the licencemust be amended either assuggested in the show cause notice,or in any other appropriate manner.

(d) if the Commission decides to amendthe licence, the Commission shallgive the licence holder a writtennotice stating –

(i) how the licence has beenamended; and

(ii) that the holder of the licencemay appeal to the Ministerwithin 28 days.

(e) despite subparagraphs (b), (c) and(d), the Commission may amend alicence by written notice to theholder of the licence withoutproceeding under those subsectionsif the licence is amended only –

(i) for a formal or clericalreason; or

(ii) in a manner that does notadversely affect the interestsof the holder; or

(iii) at the holder’s request.

(7D) For the purposes of subsection (7A)(f) –

(a) the Commission may, by writtennotice, require the holder of alicence to return the licence to the


Commission within 14 days toenable the Commission to alter thelicence to show an amendment toit;

(b) theholder of a licence shall complywith a notice under this sectionunless he has a reasonable excusefailing which he may be subject tothe prescribed punishment forprofessional misconduct;

(c) the amendment of a licence undersubsection (7A)(e) does not dependon the alteration of the licenceunder this section.

(7E) The Commission’s authority to undertakereview for fit and proper as well as forcompliance shall not be affected by thegrant of licence for a period of threeyears.”.

(h) in subsection (9) by inserting after the word“refuse” the word “amend”.

5. The principal Act is amended by inserting aftersection 7, the following new section 7A –

7A. (1) Where an IFS practitioner deals witha managing agent, the IFS practitioner and themanaging agent shall have a written contractualrelationship (hereinafter referred to as the“Service Agreement”) requiring the managingagent to comply with the following –

(a) fulfillingof physical presencerequired of the IFS practitioner;


Insertion ofnew section7A.

“Duty ofmanagingagent.

(b) maintainingof principal corporaterecords and other recordsprescribed by regulations;

(c) providing assistance in any annualaudits of financial statements of theIFS practitioner;

(d) ensuringthat operations of the IFSpractitioner are in compliance withthe laws of Belize;

(e) meeting the records and record-keeping requirements;

(f) facilitating the inspection of recordsby the IFS practitioner or by anyperson authorisedfor inspectionpurposes;

(g) employing senior executive officerswho meets the prescribedqualifications to undertake dutieson behalf of the managing agent;and

(h) any other terms and conditions ofservice, including remuneration andother consideration, confiden-tiality, amendment, termination,resignation and indemnificationagreed upon by the IFS practitionerand the managing agent.

(2) The managing agent shall beresponsible for the requirements specified inthis section with respect to physical presence,where the Service Agreement expressly statesthe responsibility of the managing agent.”.


6. The principal Act is amended by inserting aftersection 23, the following new section 23A –

23A.(1)A managing agent shall produce itslicence on demand by an officer of theCommission.

(2) An officer of the Commission shallhave power to do all things necessary forverification of compliance with this Act,regulations and other laws during an onsiteinspection of an IFS practitioner or a managingagent.”

7. The principal Act is amended in section 28(2) bydeleting the word “five” and substituting the word “fifty”.

8. The principal Act is amended after section 28, byinserting the following new sections 29 to 39-

“29. (1) Any person who for the purpose of obtaininga licence under this Act gives false, untrue or misleadinginformation or fails to disclose material facts orcircumstances, commits an offence and shall be liableon summary conviction to the penalty of –

(a) in the case of a company, a fine of twohundred thousand dollars;

(b) in the case of a natural person,a fine ofone hundred thousand dollars or toimprisonment for a term not exceedingone year or to both such fine andimprisonment,

and in addition, the licence granted to such person maybe revoked by the Commission.


Insertion ofnew section23A.

“Documentsand records tobe producedon demand.


Insertion ofnew sections 29to 39.

Offence offraudulentapplication orfalseinformation.

(2) Where the commission by any person of anoffence under this section is due to the act or default ofsome other person, the other persons commits anoffence and may be charged with and convicted of theoffence whether ornot proceedings are taken againstthe first-mentioned person.

(3) If a company commits an offence under thisAct and it is proved that the offence occurred with theconsent or connivance of, or was attributable to anyneglect on the part of, a director, manager, secretaryorother similar officerof the body, or any person who waspurporting to act in any such capacity, that person, aswell as the company, commits the offence.

30. (1) Where the Commission is considering therefusal of an application for a licence or the grant of alicence subject to the attachment of a term, limitation orcondition that is adverse to the applicant or is inconsistentwith the terms of the application, the Commission shallinform the applicant accordingly and must also informthe applicant that the applicant has a right to be heardor to make written representations to the Commissionbefore the Commission makes a decision on theapplication.

(2) Oral or written representations under this Actshall be made by the applicant within 30 days of the dateof being informed under subsection (1).

(3) The Commission shall have regard to anyrepresentations made by the applicant before makingits decision.

31. (1) Where an application for a licence is refused,no further application may be made within the period ofone year beginning with the date when the applicant isnotified of the refusal.


Right ofapplicant to beheard or makesubmission ifrefusal isundercontemplation.

Restriction inrequest tofurther applyfollowingrefusal ofapplication.

(2) Subsection (1) shall have effect, where anappeal pursuant to section 7(9) is determined orabandoned, as if the reference to the date when theapplicant is notified of the refusal were a reference tothe date on which the appeal is determined or abandoned.

(3) Where the licence is cancelled under section7(8), no application for a licence shall be made withinthe period of five years beginning with the date ofcancellation.

(4) Subsection (3) shall have effect, where anappeal pursuant to section 7(9) is determined orabandoned, as if the reference to the date of cancellationwere a reference to the date on which the appeal isdetermined or abandoned.

32. (1) The following shall be thestandard terms,conditions, or limitations of every licence issued underthis Act in respect of a licence to provide, carry on ortransact international financial services -

(a) to adhere to the Act and regulations;

(b) to adhere to the Money Laundering andTerrorism (Prevention) Act, Chapter104;

(c) to provide international financial serviceswithin the scope and nature of activitiesfor which the licence relates;

(d) totake reasonable steps to ensure thatany broker, introducer, orwhitelabelbusiness has the requiredauthorisations, licences or registrationsfor the jurisdictions it operates in;


Terms,conditions andlimitations.

(e) to have systems and procedures tomaintain relevant records pertaining tothe international financial service andprovide the Commission with therecords required to monitoreffectiveness;

(f) where applicable, to provide themanaging agent with reports,communications, and other documentsto enable it to properly discharge itsrecord-keeping requirements;

(g) to have adequate and effective systems,policies, processes and controls toensure compliance with obligations;

(h) tonotify or request approval of theCommission of material changes to thegovernance and compliancearrangementsas soon as practicable;and

(i) toremain fit and proper at all times duringwhich the licence remains valid.

(2) The following shall be the terms, conditions,or limitations of every licence issued under this Act inrespect of a licence to provide managing services -

(a) to adhere to any code of conductestablished by the Commission;

(b) to adhere to the Act and regulations;

(c) to ensure that prior approval of theCommission is obtained for the seniorexecutive officers appointed for


governance and management to take onadditional services in respect of IFSpractitioners;

(d) to be solvent at all times;

(e) to ensure adequate financial resources,specifically that -

(i) cash flow forecasts are valid,updated and approved by themembers, Board of directors orpartners;

(ii) if opening cash balance is lessthan forecasts, examine whetherthis affect the ability to complywith f inancial resourcerequirement and take necessarycorrective actions;

(iii) the managing agent is in a positionto meet its cash requirements; and

(f) to comply with the prescribed capitalrequirement.

(3) The Commission may attach terms, conditionsand limitations to a licence to provide internationalfinancial services or managing services additional tothose provided for in this section but not in a mannerinconsistent with the Act or the regulations.

(4) Any additional terms, conditions or limitationsattached to a licence by the Commission under subsection(2) shall be set out in the licence.


33. (1) Where the Commission is satisfied that an IFSPractitioner or a managing agent, or company has breachedthis Act or regulations, terms, conditions or limitations,the Commission may, by written notice, impose on theIFS Practitioner, managing agent or company, as the casemay be, a prescribed penalty which shall not exceed$20,000.00.

(2) Where by this Act, or regulations, directive orguideline given, an IFS Practitioner, a managing agent orcompany is required, by a specified time –

(a) to take a certain measure or action; or

(b) to cease a particular activity, behaviour orpractice,

and the Commission is satisfied that the IFS Practitioner,managing agent or company, as the case may be, has failedto do so, the Commission may impose on the IFS Practitioner,managing agent or company, an additional penalty of $500for every day or part of a day that the IFS Practitioner,managing agent or company fails to take such measureor cease the particular activity, behaviour or practice.

(3) A penalty under subsection (2) shall not beimposed for a period of more than 30 days.

(4)A penalty under this section shall not be imposedon an IFS Practitioner, a managing agent or company unlesssuch person is first given an opportunity to be heard andto show cause why the action must not be taken.

(5) A person who is aggrieved by a decision ofthe Commission may appeal pursuant to section 34 to theMinister against the decision.


Administrativepenalty andright ofappeal.

34. (1) The notice of an appeal made under section 33(5)shall be made to the Minister in writing before the endof the period of twenty-one days commencing on the dateon which the Commission notifies of its intention to imposean administrative penalty.

(2) The notice under subsection (1) shall state theground of appeal.

(3) The Minister may assess a penalty in theprescribed amount against an IFS practitioner, managingagent or company if the IFS practitioner, managing agentor company makes a representation to the Minister in themanner set out under this section.

(4) Before assessing a penalty, the Minister shallrequire from the Commission, a report –

(a) setting out the facts and circumstances that, inthe Commission’s opinion,renders the personliable to a penalty;

(b) specifying the amount of the penalty that theCommission considersappropriate in thecircumstances;

(c) setting out any additional information includingthe recommendations considered in thecircumstances.

(5) No penalty shall be assessed by the Ministermore than three years after the act or omission that rendersthe person liable to a penalty first came to the knowledgeofthe Minister.

(6) After considering any representations, theMinister may –


Appeal to theMinister.

(a) confirm the penalty imposed by the Commission;

(b) re-assessand substitute the penalty which theCommission would have power to impose andset a date by which the penalty is to be paid infull; or

(b) determine that no penalty should be assessed.

(7) The Minister shall serve a copy of his decisionpursuant to subsection (6) on the person who made therepresentations.

(8) The Minister may file in the Court a certificatesigned by the Minister and setting out –

(a) the amount of the penalty assessed pursuant tosubsection (6); and

(b) the person from whom the penalty is to berecovered.

(9) A certificate filed pursuant to this section hasthe same force and effect as if itwere a judgment obtainedin the Court for the recovery of a debtin the amount setout in the certificate, together with reasonable costs andchargeswith respect to its filing.

(10) The Minister may assess a penalty pursuantto this section notwithstandingthat the facts and circumstancesgiving rise to the penalty arose due to the actionsof anemployee, helper, contractor or agent of the IFS practitioner,managing agentor company required to pay the penalty.

35.A penalty under this Act shall be paid before theend of the period of thirty days commencing on the datewhich the penalty is notified or if an appeal was made,the date specified by the Minister in accordance with section34(6)(b).


Enforcementofadministrativepenalties.

36. (1) The Commission’s power to disclose informationunder this Act or regulations made in regards to physicalpresence has effect despite any obligation as to confidentialityor other restriction on the disclosure of informationimposed by any other law, contract or otherwise.

(2) The disclosure of information under this Actor any Regulation does not contravene –

(a) any obligation of confidentiality in relation tothe information so disclosed; or

(b) any other restriction on the access to ordisclosure of the information so accessed.

37. (1) An authorized person may examine and takecopies of any company document that is located on thepremises of a company.

(2) The power under subsection (1) may be exercisedonly for the purpose of investigating any issue relatingto compliance with any provision of this Act or Regulationsmade in regards to physical presence.

(3) An authorized person may at any reasonablehour enter the premises of a company for the purpose ofexercising the power under subsection (1).

(4) An authorized person may by notice require anyperson to produce any specified document at the premisesof the company where the document is located for thepurpose of enabling the authorized person to exercise thepower under subsection (1) in relation to that document.

38. (1) A person commits an offence if, withoutreasonable excuse, the person –


Confidentiality.

Power to entercompanypremises andexaminedocuments.

Obstructing anauthorizedperson.

(a) obstructs an authorized person in the exerciseof the authorized person’s powers under section37; or

(b) fails to provide such reasonable assistance asan authorized person may require when theauthorized person is exercising his powersunder section 37.

(2) A person who intentionally alters, suppressesor destroys any document that has been specified in a noticeof the Commission commits an offence.

(3) A person who contravenes subsection (1) isliable on summary conviction to a term of 6 monthsimprisonment or to a fine of twenty-five thousand dollars.

(4) A person who contravenes subsection (2) isliable on summary conviction to a term of 2 yearsimprisonment or to a fine of two hundred thousand dollars.

39. (1) If an employee or agent of an IFS practitioneror managing agent, or a person acting or purporting toact on behalf of the IFS practitioner or managing agentcommits an offence against this Act or the InternationalBusiness Companies Act, Chapter 270for which the IFSpractitioner or managing agent would have been liable hadit been committed by the IFS practitioner or managing agenton premises to which the licence relates, the IFS practitioneror managing agent is to be taken also to have committedan offence and is liable to the same penalty as is prescribedfor the principal offence.

(2) An IFS practitioner or managing agent may beproceeded against and convicted under subsection (1)although the employee or agent has not been proceededagainst or has not been convicted under this Act.


Liability ofofficers, IFSpractitionerand managingagent.

(3) It is not a defence to an offence under the Actor Regulations to show that the IFS practitioner or managingagent did not know, or could not reasonably have beenaware of or have prevented the offence committed by theemployee or agent or had taken reasonable steps to preventthe commission of the offence.”.

9. (1) Every IFS practitioner who, at the commencementof this Act, has been operating in Belize shall provide theCommission with satisfactory evidence that it meets therequirements for physical presence as prescribed byregulations.

(2) Every application made under section 7 of theAct and wholly or partly heard by the Commission whenthis Act comes into force is to be continued and dealt within all respects as if this Act had not come into force.

(3) A licence granted as a result of an applicationdetermined under subsection (2) is to be granted on thesame terms and conditions that would have applied if thisAct has not come into force but subsection (1) shall becomeapplicable for compliance by the IFS Practitioner.

(4) Every application made under section 7 of theAct and has not been wholly or partly heard by theCommission when this Act comes into force is to be takento be an application made under this Act and this Act isto apply accordingly.


Transitional.

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