Requirements for Foreign Currency Accounts

Foreign currency accounts are granted to individuals and entities in the export-earning sector solely to facilitate business transactions, not to accumulate foreign currency. These accounts in the domestic banking system are granted to businesses generating a significant amount of foreign currency earnings and for those that need to make regular payments to foreign suppliers, as per Exchange Control Direction 10/2014. 

Authority has been delegated to the Authorized Dealers (domestic banks) to open foreign accounts for export earners, foreign investors and other appropriate entities/individuals in accordance with their specific regulations.  As such, these account balances are expected to be fluid and maintained at low levels. A ceiling is set by the domestic bank for the maximum amount of foreign currency which can be held in those accounts. Balances above the ceiling should be sold to the domestic bank. Domestic banks may not provide foreign currency accounts to non-residents, who are instead encouraged to do business with institutions licensed under the International Banking Act.

Legal entities that automatically qualify to operate a foreign currency account include:

a. Businesses which operate in the Commercial-free Zone (CFZ)
b. Businesses which operate in a Designated Processing Area (DPA)
c. Foreign Embassies operating in Belize 
d. Diplomats working in Belize on behalf of other countries

Note that retirees under the “Qualified Retired Persons (QRP) Incentives Act” do not qualify to operate foreign currency accounts.

All applications are submitted to the Central Bank by Authorized Dealers (domestic banks) and with whom the individual or the legal entity has applied to open the foreign currency account. The Central Bank requires that specific information be provided to validate the identities of the parties involved, to conduct background clearance checks for anti-money laundering purposes, to ensure the transaction is bona fide, and to obtain essential statistics for monitoring purposes to process the application.

Note: This application must be completed and submitted by your respective domestic bank. 

Requirements for approval of foreign currency account

 

1. Letter of application for foreign currency 

The letter of application for foreign currency accounts should be sent to the Central Bank addressed to the Manager of the Exchange Control Department, and should contain the following information:

a) Purpose of account
b) Nature of organization or individual
c) If applicant is a legal entity, provide ultimate beneficial owners (UBOs) name and address
d) Payments from the account
e) Credit limit
f) If additional account, reason for account
g) If transfer of account from one domestic bank to another, reason for transfer of account

    2. Supporting documentation 

    The following documents must be attached to the letter of application:

    a) Completed XCH9 application bearing the following;
    • Applicant’s signature, company or employer (i.e. Embassy logo) stamp and date
    • Individual’s signature who is representing the domestic bank, stamp and date

    b) If a legal entity, company documents such as memorandum and articles of association and annual return for established companies)

    c) For export processing companies, EPZ certificate to show status.

    d) Sign true copy or notarized copy of passports or social security card for each UBO

    e) Ownership structure of legal entity

    f) For international organizations with external funding tied to projects, project agreements

    g) For foreign diplomats, employment letter and diplomatic identification

    3. Completed XCH9 form 

    The form to open and operate foreign currency account with Authorized Dealer (XCH9) must include the following information:
    a) The bank with which the account is proposed to be maintained;
    b) The currency in which the account is to be maintained;
    c) The nature and volume of receipts and payments that are to pass through the account;
    d) The maximum credit balance which is expected to be retained in the account and the basis for determining this amount; and
    e) The reason why a foreign currency account is being requested.

    The Central Bank reserves the right to request any additional information as deemed necessary for the processing of the application.

    If you have any further questions, please contact the Exchange Control Department of the Central Bank of Belize.