The following questions explain Belize’s National Risk Assessment (NRA), the responsibilities of key stakeholders, and the national approach to addressing money laundering and terrorist financing risks. For the complete assessment findings, see the National Risk Assessment page.
- What is an NRA?
- What is the FIU’s role in the NRA?
- Why does Belize conduct an NRA?
- What is a Fourth Round Mutual Evaluation?
- What is FATF?
- What is FATF Recommendation 1?
- What is CFATF?
- What methodology is used for the NRA?
- Who oversees the NRA?
- What sectors, agencies and stakeholders participate in the NRA?
- What are the NRA phases and timeline?
- What are the NRA deliverables?
- How frequently is the NRA conducted?
- What is NAMLC?
- What is the composition of NAMLC?
- What does NAMLC do?
- What is a risk-based approach?
- Why is a risk-based approach important?
- What is money laundering?
- What are the three stages of money laundering?
- What are the effects of money laundering?
A. What is an NRA?
A National Risk Assessment (NRA) is a comprehensive exercise through which a country identifies, assesses and understands its money laundering (ML) and terrorist financing (TF) threats and vulnerabilities. Its findings support appropriate measures to prevent and mitigate financial crime.
The process considers criminal activities that generate illicit proceeds, the exposure of financial and non-financial sectors to ML/TF, the effectiveness of preventive controls, and the ability of law enforcement, supervisory and other competent authorities to respond. The assessment helps determine where risks are higher and where resources and controls should be prioritised.
B. What is the FIU’s role in the NRA?
The Financial Intelligence Unit (FIU) of Belize plays a central coordinating role in the NRA process. The Director of the FIU chairs the National Anti-Money Laundering Committee (NAMLC), which coordinates the national response to ML/TF risks. The FIU works with other competent authorities, supervisory bodies and stakeholders to support information gathering, analysis, the identification of risks and national risk-mitigation measures.
C. Why does Belize conduct an NRA?
Belize conducts national risk assessments to maintain an informed understanding of the money laundering and terrorist financing risks facing the country. This supports risk-based policies, proportionate preventive measures, effective supervision, improved inter-agency cooperation and the appropriate allocation of resources.
Belize’s First NRA covered the period 2010-2016. The Second NRA covers 2017-2023 and builds on the earlier assessment. Both reports are accessible from the NRA page.
D. What is a Fourth Round Mutual Evaluation?
A Fourth Round Mutual Evaluation is an assessment of a country’s anti-money laundering and countering the financing of terrorism framework against international standards. It examines both technical compliance with the FATF Recommendations and the effectiveness of the measures implemented in practice, assessed against 11 Immediate Outcomes.
Belize’s Fourth Round Mutual Evaluation was conducted by the Caribbean Financial Action Task Force (CFATF). The on-site visit took place from 4-15 December 2023. The report was adopted in December 2024 and published in January 2025. Therefore, references to the evaluation as an upcoming exercise in 2021 are no longer current.
For further information, see the CFATF Fourth Round Mutual Evaluation Report of Belize.
E. What is FATF?
The Financial Action Task Force (FATF) is an international standard-setting body that develops recommendations to help countries combat money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. Its standards provide a framework for laws, regulation, supervision, international cooperation and the effective investigation and prosecution of financial crime.
For more information, visit the FATF website.
F. What is FATF Recommendation 1?
FATF Recommendation 1 concerns assessing risks and applying a risk-based approach. Countries should identify, assess and understand their ML/TF risks, coordinate appropriate actions and allocate resources to mitigate those risks effectively.
Financial institutions and designated non-financial businesses and professions (DNFBPs) are expected to identify, assess and understand relevant risks; maintain appropriate policies, procedures and controls; monitor their effectiveness; and apply measures proportionate to the risks identified. Higher-risk situations require enhanced measures, while simplified measures may be appropriate in lower-risk situations where permitted by applicable requirements.
G. What is CFATF?
The Caribbean Financial Action Task Force (CFATF) is a FATF-style regional body comprising jurisdictions in the Caribbean Basin and Central and South America. Its members work to strengthen AML/CFT/CPF systems and implement the FATF international standards. CFATF conducts mutual evaluations and follow-up activities to assess members’ compliance and effectiveness.
For more information, visit the CFATF website.
H. What methodology is used for the NRA?
Belize’s Second NRA used the World Bank Group’s revised National ML/TF Risk Assessment Tool. The methodology considers national ML threats and vulnerabilities, sectoral vulnerabilities, TF risks and risks relating to financial inclusion products.
The Second NRA also included stand-alone assessments of the potential misuse of legal persons and legal arrangements, and the risk of terrorist financing abuse involving non-profit organisations. The tool was provided by the World Bank Group, while the data, analysis and findings were the responsibility of Belizean authorities.
I. Who oversees the NRA?
The National Anti-Money Laundering Committee (NAMLC), chaired by the Director of the FIU, provides national oversight and coordination. The assessment is carried out collaboratively by relevant competent authorities, sectoral specialists and public and private sector stakeholders.
J. What sectors, agencies and stakeholders participate in the NRA?
Participation varies according to the scope and modules of the assessment. Relevant stakeholders can include:
- Government and competent authorities: the FIU, law enforcement and prosecution authorities, Customs, Immigration, tax authorities, relevant ministries and other public bodies.
- AML/CFT supervisory authorities: the FIU, Central Bank of Belize, Financial Services Commission (FSC), and Office of the Supervisor of Insurance and Private Pensions (OSIPP).
- Financial institutions: banks, credit unions, remittance service providers, moneylenders, insurance companies, securities businesses and other regulated financial service providers.
- Designated non-financial businesses and professions: real estate agents, attorneys and other legal professionals, accountants and auditors, casinos and gaming establishments, motor vehicle dealers, businesses operating in free zones, registered agents, and dealers in precious metals and stones, where applicable.
- Other stakeholders: non-profit organisations, relevant professional bodies, private sector associations and others with information pertinent to the risk assessment.
K. What are the NRA phases and timeline?
Although each assessment may vary, the NRA process generally includes three phases:
- Preparation and data collection: defining the scope, organising working groups, identifying information needs and gathering data through questionnaires, interviews, consultations and other sources.
- Analysis and drafting: evaluating threats and vulnerabilities, determining risk ratings, validating findings and preparing draft assessment materials.
- Finalisation and follow-up: completing the report, identifying mitigation priorities and using the findings to inform policies, action plans and ongoing risk-monitoring activities.
Belize’s assessment milestones: the First NRA assessed 2010-2016 and its report was published in December 2019. The Second NRA commenced in July 2022 and expanded its data coverage to 2017-2023. Its public report is available on the NRA page.
L. What are the NRA deliverables?
The principal outcomes of the NRA process include:
- A better understanding of the main sources and methods of money laundering and terrorist financing.
- Identification of national and sectoral threats, vulnerabilities and risk levels.
- Evidence to help prioritise higher-risk activities and sectors.
- Recommendations and priorities for national policies, action plans, supervision and preventive measures.
- Improved cooperation and capacity among public authorities and private sector stakeholders.
- Public information about key findings where publication is appropriate, subject to confidentiality safeguards.
M. How frequently is the NRA conducted?
A National Risk Assessment is not a one-time exercise. Countries are expected to keep their understanding of ML/TF risks up to date. Belize conducts periodic national and targeted risk assessments according to national policy, the availability of information and changes in the risk environment. The timing and scope of future assessments may vary.
N. What is NAMLC?
NAMLC stands for the National Anti-Money Laundering Committee. It is Belize’s national coordination mechanism for efforts to combat money laundering, terrorist financing and proliferation financing. It was established under section 77B of the Money Laundering and Terrorism (Prevention) Act.
O. What is the composition of NAMLC?
NAMLC brings together senior representatives of key authorities. Its membership, as listed by NAMLC, includes:
- Director of the Financial Intelligence Unit (Chairperson)
- Financial Secretary
- Solicitor General
- Governor of the Central Bank of Belize
- Commissioner of Police
- Chief Executive Officer of the Ministry responsible for the Police
- Director of Public Prosecutions
- Comptroller of Customs
- Director General of the Financial Services Commission
- Director General of the Belize Tax Service Department
- Supervisor of Insurance and Private Pensions
- Director of Immigration and Border Management Services
See the official NAMLC information page for further details.
P. What does NAMLC do?
NAMLC promotes domestic coordination and cooperation in the prevention and detection of money laundering, terrorist financing and proliferation financing. Its functions include advising the Minister responsible for Finance on national policies and international cooperation, overseeing the development and implementation of national action plans, and supporting coordination among supervisory, law enforcement and other competent authorities.
Q. What is a risk-based approach?
A risk-based approach (RBA) means identifying and understanding the risks to which a country, authority or reporting entity is exposed and applying controls proportionate to the level and nature of those risks. Where risks are higher, enhanced measures are required; where risks are lower, simplified measures may be appropriate if permitted by law and relevant guidance.
R. Why is a risk-based approach important?
A risk-based approach helps authorities and reporting entities focus attention and resources on the risks most likely to cause harm. It can improve the effectiveness of customer due diligence, transaction monitoring, supervision, staff training, and the identification and reporting of suspicious activity.
It also supports efficient use of resources and ensures that controls respond to actual risks rather than relying on the same measures in every circumstance. Reporting entities remain responsible for meeting all applicable legal and regulatory obligations.
S. What is money laundering?
Money laundering is the process of concealing or disguising the criminal origin of money or other property so that proceeds of crime appear to come from legitimate sources. It can involve the movement, conversion, transfer or use of criminal proceeds through financial transactions, businesses, assets or other arrangements.
T. What are the three stages of money laundering?
Money laundering is commonly explained using three stages:
- Placement: introducing proceeds of crime into the financial system or another channel of economic activity.
- Layering: carrying out transactions or transfers intended to make the origin, ownership or movement of the funds more difficult to trace.
- Integration: reintroducing funds or assets into the legitimate economy in a manner that gives them an appearance of lawful origin.
Not every money laundering scheme follows these stages in a clear or sequential manner.
U. What are the effects of money laundering?
Effects on businesses and financial institutions: Money laundering can damage trust, expose institutions to legal and regulatory consequences, undermine fair competition and harm the reputation of businesses and the wider financial system.
Effects on economic development: Illicit financial flows can distort investment decisions, weaken financial stability, discourage legitimate investment and divert resources away from productive economic activity.
Effects on society and governance: Money laundering allows criminal enterprises to benefit from unlawful activities, facilitates corruption and can weaken public confidence in institutions and the rule of law. Effective prevention and enforcement help protect communities and the integrity of the economy.
For assessment findings and report downloads, visit Belize’s National Risk Assessment page:
