Companies in Belize that provide international payment processing services
are required to apply for and obtain a special license granted by the International Financial Services Commission.
Licensing is subject to a number of conditions, included in this article by our team of agents who specialize in Belize company formation
. The applicant must be able to show that he has the required skills or competence in the field for which the license is requested. Licenses in Belize, not only the one for payment processing, are subject to a certain duration and applicants should comply with the ongoing requirements for renewing the licenses as needed.
The application requirements, the eligibility criteria, and other issues should be taken into consideration by those who wish to obtain a payment processing license in Belize.
Below, our Belize offshore company formation specialists highlight the main conditions and requirements for obtaining this type of license. Investors who are interested in obtaining permits or licenses for other types of financial services can also reach out to our agents.
Conditions for obtaining the payment processing license in Belize
Investors who open a company in Belize and plan on providing payment processing services need to comply with the following requirements regarding its use:
• Compliance: the license holder shall comply at all times with the International Financial Services Commission Act.
• Disclosure: the company will provide accurate descriptions to its customers about the services provided under the license.
• Addressing complaints: the complaints from customers are to be addressed accordingly and customers may not be discriminated.
• Protective measures: the company shall use special anti-money laundering measures as well as to measure for the prevention of terrorist financing.
• Special transactions: those transactions above 10,000 USD or its equivalent shall receive special attention.
The company that provides payment processing services in Belize under a license issued by the International Financial Commission must inform the Commission and obtain its approval in the following cases:
Changes to the company: when the business is planning on entering into a merger, or amalgamation as well as in the case of business consolidation.
Asset transfers: when the company that holds the license transfers a large portion of its assets or liabilities.
Corporate changes: when the company plans on changing its name or registered address included on the license.
Other company changes: an approval must also be obtained when the company is to alter its Articles of Association or its Memorandum.
Clients: approval is required when the company has a Belize resident as a client for its payment processing services or money transmissions.
Other important aspects for companies engaged in payment processing in Belize
Requirements for payment processing license holders
Holders of licenses for international payment processing services are not allowed to engage in banking activities, for example receiving public deposits or using the money for making loans, credit extensions, investments or guarantees. The company is prohibited from making any payment transfers when it is insolvent and, if this occurs, it must notify the International Financial Services Commission immediately. For the purpose of compliance, insolvency is the event in which the company has placed voluntary or involuntary bankruptcy or it has admitted insolvency, or it is unable to comply with the net capital requirements for holding the license.
The holder of the license must keep at all times, with a bank or licensed financial institution in Belize, a minimum paid up capital of 75,000. US$. The amount cannot be removed from the account without the permission of the International Financial Services Commission.
Investors who obtain a payment processing license in Belize should know that any breach of the conditions or non-compliance can result in the revocation of the license.
According to the Statistical Institute of Belize
, other activities, apart from banking and insurance, present opportunities for investors. The data can be summarized as such: gross domestic product in agriculture and forestry was at 255.5 BZE million $ in 2018; for manufacturing it was at 160.2 BZE million $; for tourism (hotels and restaurants) it was 576.5 BZE $ million in 2918. These statistics highlight the evolution of other business fields for those who wish to open a company in Belize.
Investors who are interested in engaging in financial services can contact our team for specialized assistance in obtaining the payment processing license or other licenses such as the license for trading in foreign exchange.