Belize
Financial Services Providers

Brokerage Services
Belize IFSC

General Overview

Belize, an English-speaking country in the heart of Central America, is a relative newcomer in the field of international financial services. Since attaining independence from Britain in 1981, Belize has been endeavoring to diversify its economy away from the agricultural sector. Belize, therefore, saw the international financial services sector as a window of opportunity where it could seek to achieve competitive advantage. Belize also earns a substantial income from the tourism sector.

The election of a new Government in Belize in 1998 provided fresh impetus to the development of the offshore services sector.

Belize now offers a full menu of investment vehicles designed to meet the needs of sophisticated investors around the world. As the range of services has widened, Belize has become a more convenient place to do business. It has truly become a ‘full service’ jurisdiction – ‘a One-Stop Shop’ (as it were).

With the enactment of the Offshore Banking Act in 1996, Belize also passed the Money Laundering (Prevention) Act which established mechanisms and procedures to ensure that the country’s financial institutions are not used to disguise the source of illicit funds.

Belize’s banking sector (including offshore banking) is regulated by the Central Bank of Belize, while the non-banking sector falls within the jurisdiction of the International Financial Services Commission (IFSC) established in 1999.

Belize Broker License

Belize offers a competitive forex industry legislation framework, in a strong and highly regulated infrastructure. It is important to understand the necessary application procedures in place before you begin to acquire a Belize broker license. It is also important to have a thorough understanding of the regulatory body that issues Belize broker licenses. This will ensure that the Belize broker license procedure is carried out in compliance with the rules and regulations as laid out by Belize’s regulatory authority.

Belize Forex Broker Firms, Belize IFSC

To obtain a Belize forex license, you will need to apply to the Belize International Financial Services Commission. One of the main responsibilities of the Belize International Financial Services Commission is to issue Belize broker licenses. You will need to apply to the Belize IFSC in order to obtain your Belize broker license and thus to trade in forex, securities and other financial instruments.

The Belize IFSC is responsible for licensing and regulating firms that provide the following services:

Trading in securities and financial instruments
Asset protection and management

Forex Brokerage, consultancy and advisory services for trading securities, money lending, money transmission and payment processing, including:

• Online trading platform for your clients to make their own trades
• Related services to allow clients opening their own trading accounts with your

firm

• Convenient access to their accounts via debit cards
• Additional full service brokerage options
• Managed forex trading options

Obtaining a Belize Forex License

To obtain a Belize forex license you will need to have a company in Belize that is specifically formed for the purpose of providing forex activities.

Furthermore, you will have to submit:

Special memorandum and articles of association;
Full set of documents which will include your company’s internal procedures, your company’s business plan and compliance procedures;
Due diligence of all directors and beneficial owner of the company;

The application procedure for applying for and obtaining a Belize IFSC broker license is relatively straightforward.

Moreover, and contrary to other similar jurisdictions, no local directors are required and no physical operation or employees are required in Belize to operate such a licensed company.

Atrium will guide you through the entire application procedure will ensure that you follow all the correct procedures and ensure that the correct documents are submitted to the Belize IFSC.

Banking for Forex
Banking Solutions for start-up or established Forex Brokers

It is vitally important for any forex brokerage firm to have adequate and reliable banking partners. Due to the fact that forex brokerage business falls into the ‘high risk’ category as per modern international banking standards, it is becoming increasingly difficult to find banks that would be willing to accept brokerage firms as their clients.

The other clear recent trend in the international banking world that has emerged, is that big international banks are trying to find new sources of income by directly entering into online forex broker business and subsequently not too interested in encouraging competition within the online currency trading field.

Atrium has established relationships with banks located in different international jurisdictions, and can promote banking relationships that would suit the demands of any broker, all in order to help you find a suitable forex banking solution or open a forex bank account.

Capital Requirements

Minimum capital requirements for companies interested in Belize Forex regulation is fairly low (currently $25,000 or $100,000 depending on Brokerage License) – compared to the minimum capital requirements in many other jurisdictions.

Taxation

Furthermore, taxation rules in Belize are highly beneficial for foreign companies (0% corporate tax), and unlike in many other jurisdictions it is fairly simple to set up a company in the country without residing there.

Types of Financial Licenses

In Belize, two licenses are available the normal brokerage license and the full license

Normal Brokerage License

Normal brokerage license has limitations in that they are not allowed to hold third party funds in their own account; clients who usually apply for this license are usually consultants or introducing brokers who act as an Intermediary between the client investor and trader; no monthly report is required to be submitted to the IFSC.

Full Brokerage License

Full license allows the license holder to take custody of clients’ funds to trade and invest (allowing third party funds); under this license, it is required to submit a summary of revenue (including number and value of trades) on a monthly basis to the IFSC.

For any of these licenses, a bank account has to be opened in the Belize.

Application Step by Step

Incorporation of an IBC in Belize under special memorandum and articles of association (no bearer shares allowed)

Bank Account opening to secure capital requirements, reflecting the type of license, as required by IFSC

Submission of application, biographical affidavit as set out on Schedule 2

Preparing and filing a business plan (5 year forecast) including your company’s internal and compliance procedures;

Due diligence of all directors and beneficial owner(s) of the company, including:

Notarized coloured copy of passport (signature and picture pages only)

Bank reference letter showing satisfactory relationship of minimum two years

Professional reference (or second bank reference) from lawyer or accountant

Proof of physical address (recent utility bill)

CV showing experience in brokerage or related activity

The application procedure for applying for and obtaining a Belize IFSC broker license is relatively straightforward.

Moreover, and contrary to other similar jurisdictions, no local directors are required and no physical operation or employees are required in Belize to operate such a licensed company.