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Belize: Offering Trust Agreements While Preventing Money Laundering |
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Belize is definitely one of the most sought-after centers for offshore trust and asset protection. Although offshore may be a term frequently connected with criminal activities, Belize is all for the anti-money laundering activities. Thus, in 1996 the Government of Belize introduced the Money Laundering (Prevention) Act of 1996.
First of all, what is money laundering? Simply put, money laundering pertains to either direct or indirect engagement in a transaction that involves any property as a fruit of any proceeds of criminal activities. Money laundering, according to Belizean Law is any act that can be classified as the act of dealing with (may be receipt of or disposal of, etc.) any property that is also a fruit of any criminal activity.
Under this piece of anti money laundering legislation, money laundering is rendered punishable by the law with a fine of $25,000 to $100, 000 and/or imprisonment for a term lasting from 3 to 6 years.
There have been many attempts at money laundering that either involves inducement or deception of any service provider in accepting deposits or transfer of funds and other assets. With the birth of this piece of anti money laundering law, standard operations were set which assure that both the service provider and the investor are free from the taint of suspect funds and assets. Basically, records of each transaction are maintained and these also include information such as the identities of the parties involved, the nature of the transaction and method of execution, the information on all other accounts that may have been involved and the total value involved in the transaction.
Furthermore, careful identification of each client's identity is assured, thus permitting efficient accomplishment of the obligation of both parties. This helps in maintaining the record of the business transaction for a minimum of 5 years and increases the capability to furnish the needed information required by the Beliezean law.
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