Download Several large American and European banks have recently decided

Press Release
23 April 2015
Foreign Correspondent Banking Relationships
Several large American and European banks have recently decided to cut ties with select
institutions in small developing countries, a decision that appears to be correlated with the
imposition of heavy regulatory fines for infractions associated with the recent global financial
crisis and violations of geo-political embargoes. The new strategy of these institutions involves a
reduction in the scope of global operations to minimize the probability of incurring further
sanctions and fines, a process known as "de-risking". This is the context within which Belize
Bank Limited and Belize Bank International Limited are losing foreign correspondent banking
relationships.
The public is informed that Belize's other domestic banks (ScotiaBank Belize Ltd., Atlantic Bank
Ltd., First Caribbean International Bank Ltd. and Heritage Bank Ltd.), all of which are
authorized by the Central Bank of Belize to deal in foreign exchange, have not been affected.
The Central Bank has been working closely with the Bankers Association to manage the
situation and to ensure that international banking services to the general public are not unduly
hindered. The public is therefore advised that the aforementioned banks will continue to conduct
foreign exchange transactions (including wire transfers, bank drafts, letters of credit and bank
guarantees) and that Belize Bank Ltd. will be making its reserves of foreign exchange available
to the Central Bank to ensure that the needs of its customers and that of the rest of the domestic
system will be served. Belize Bank Ltd. has also provided an assurance that all its other banking
services (including credit card issuance and merchant acquiring services) will be continuing as
usual while it continues to seek ties with other foreign correspondent institutions.
The public should note that on a diplomatic level, the Belizean authorities and its regional
partners are continuing to engage in discussions with the US authorities and financial institutions
to draw attention to the potentially disruptive effects of the de-risking strategy of large banks on
small, trade dependent economies. In the meanwhile, questions may be directed to the officials
of their respective banks or to Mrs. Julia Perera, Deputy Director Foreign Exchange, Central
Bank of Belize.
Office of the Governor
T: (501) 223 6221
F: (501) 223 6222