Belize is an independent Caribbean country. Its legal system is based on UK common law with local enacted legislation and an independent executive and legislative judiciary. Being an international financial center, the country attracts foreign direct investment to support its administrative and financial services industry. The banking system is regulated by the Domestic Banks and Financial Institutions Act, the International Banking Act and the Credit Unions Act. In 2020 the Deposit Insurance Act was signed into law to protect the account holders of domestic banks and credit unions in distress. Additional information is available here: deposit protection in Belize.
Deposit Guarantee Scheme (Belize): The objective of bank deposit protection in Belize is to contribute to the stability of the country and its financial system by protecting insured deposits of licensed and supervised fund members.
Secured Deposit Limit: $ 20.000 per account holder and institution.
Insurable and Insured Deposits: These are unpaid balances held with domestic banks and credit unions from or on behalf of a person.
Covered Payout Events: Compensation shall be paid to eligible creditors when a member institutions fails and a liquidator is appointed, dissolution, voluntary or compulsory winding up is initiated, or when the license of the bank is revoked or the registration of the credit union cancelled.
Claim Filing Procedure: Within two days of the occurrence of a covered payout event, the Deposit Insurance Corporation shall publish a notice in the Gazette, in at least one local newspaper, on its website and other communication channels to notify the public. This notification includes the guidelines on claim filing and repayment of insured deposits.
Timeframes: Payment shall be made to eligible creditors within one month of the covered payout event.
Repayment Conditions: The Belize Deposit Insurance Fund excludes repayment to persons who have been a party to or were directly involved with the events that caused the closure of the fund member, or who have profited from these circumstances. Also ineligible for fund coverage are shareholders of a fund member, financial entities and institutions, insurers and public entities.
Fund Membership: Membership of the Deposit Insurance Corporation is obligatory for licensed domestic banks and registered credit unions. Financial institutions subject to the Offshore Banking Act (Cap. 267) do not participate in the fund. Fund members pay initial contributions, annual premiums and fees to establish a healthy coverage ratio for swift repayment in case a payout event occurs. An initial contribution of $ 1 million is made by the Central Bank of Belize.
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