An untouched financial haven and untapped potential awaits the bold investor in Belize. Ruth Neal of Georgetown Trust Ltd reveals why her country is so attractive.

Imagine the consternation of a seventeen year old who left a beloved country to travel abroad a couple decades ago, only to find most of the people she came in contact with did not even know the name of her country, much less its geographical location?

"Belize?" people would ask, "Where is that? In Africa, or South America?" In answering, she had a choice to make, she could either be ashamed of the fact that her country was of such seemingly little significance in the world that the people around her knew little, or nothing about it, or she could be proud of her secret knowledge of a paradise unfound.

Today, a little over twenty years later, that girl can look around her and know that she was right in her judgment. Belize is no longer a secret to the tourists who flock to her shores declaring her a paradise found; but she still holds her secrets from many.

Wealth of legislation and resources

One such secret is the wealth of legislation that has been enacted, making Belize an international financial centre. Of course, in and of itself, having laws for the formation of tax exempt international business companies, trusts, protected cell companies, limited liability partnerships, international banks, international insurance companies, and mutual funds is not particularly unique, and is definitely not original.

Actually, Belize readily admits to having closely examined the models of other international financial centres before writing its laws in an effort to avoid the pitfalls of many.

But what makes this English speaking Central American nation truly unique in the financial services arena, besides its high percentage of bi-lingual population and proximity to North America and the South and Central American emerging markets, is its untapped resource of back office workforce that is extremely competitively priced when compared to labour costs around the Caribbean and in the developed industrialised economies.

For years, Belize has been unconsciously preparing itself to provide an ideal location and workforce to enable the administration of offshore banks, investment funds, captive insurance companies, charitable foundations and trusts. With a small, vibrant population of around 282,000, of which more than 65% is below 30, Belize is producing a steady stream of bright young minds bearing certificates and degrees in business studies and administration. This active population is seeking employment and looking to fulfil our unrealised potential.

Of course, the use of words such as unconsciously, and unrealised speak of the uncharted and undefined. It draws one's thoughts to such things as uncut diamonds, and gold deposits buried deep in the earth. That is precisely the kind of discovery this combination of offshore legislation and potential workforce can be to a competitive international business. It is all a matter of perspectives.

Uncharted waters

The teenager, who thought her home was a paradise when others knew nothing of it, now thinks it is an opportunity waiting to happen for those with the financial know-how and determination to want to do things in a new way. It is an opportunity that may never be realized unless one is looking for it, and is prepared to chart unknown waters believing that to the conqueror comes the reward.

As a relatively new international financial centre and jurisdiction, Belize lacks both sophistication and specialization in its financial services sector. Although it provides access to a number of financial vehicles, it still lacks the ability to provide the investment platforms and opportunities required by the user of those vehicles to maximize the benefits to our economy.

In other words, most Belize domiciled financial vehicles are currently operated outside Belize, taking with them most asset deposits and job creation to other jurisdictions that provide the investment highways needed.

However, a number of emerging Belizean service providers hold the view that this shortcoming is balanced by its great potential and competitive advantages. Being a former British colony, Belize is now governed by a stable democratic system of government that has remained unshaken through several changes in party rule, and has maintained a stable economy with its currency pegged to the US dollar.

Regardless, since there is no foreign exchange control on the accounts of offshore enterprises, there is no fear of being unable to access internationally denominated funds banked in Belize. Additionally, Belize is technologically able to support worldwide communications links by telephone, Internet, and digital subscriber links, enabling business to operate without limitation from within the country.

Furthermore, although Belize has maintained its client confidentiality laws, it is working to put into place the necessary policies and operations to ensure that it gains the respect it deserves as a principled, well established jurisdiction.

With this in mind, the Financial Intelligence Unit has undertaken to revise the Money Laundering Legislation and Guidelines, and is facilitating the training of members of the financial services sector from all areas of both the local and international fields in detection and prevention of money laundering. Secondly, the Belize Offshore Practitioners Association (BOPA) has spearheaded the training of financial services personnel to international standards. In fact, the practitioners' code of conduct requires training for employees.

Purposeful measures

With such a direct demonstration of interest in the international sector, the government of Belize has proven its willingness to support private sector involvement in the economy. This is a marked advantage that should inspire confidence in both local and international investors, for it sends a twofold message. In the first instance, it says that the Belize government wants to see continuity in the domicile's international financial sector. Secondly, it tells the world that the government is willing to do its part to ensure its growth and success.

This mandate has been taken very seriously by Georgetown Trust Limited. As an independent service provider, this company has been positioning itself to combine its vision of Belize's administrative potential with its role as service provider. This has enabled it to create an ideal fit for both the high net worth individual, and the highly motivated financier seeking safe, sensible alternatives to high cost, high profile, highly regimented jurisdictions.

Georgetown Trust can quickly and efficiently provide a vehicle such as an international business company (IBC), limited life, or limited liability partnership for individual, independent use. However, its ultimate aim is to not only to create the vehicle; but also to facilitate its use entirely where requested.

With this in mind, since its inception in 1999, Georgetown Trust has sought several licenses including those for company and trust formation and administration, mutual fund administration, and principal insurance representation. This has resulted in the Georgetown Group of Companies, which include Georgetown Trust Limited, Georgetown Administrative Services Limited, and Georgetown (Principal Insurance Representative) Services Limited.

In so doing it has facilitated the formation and administration of many companies as well as the more sophisticated entities such as banks and insurance companies. In its administrative capacity it executes investment placements into funds worldwide, and administers subscriptions for others. Its role is to ensure that it does its best to provide its clients with what they need to be successful in any venture.

Therefore, in seeking a jurisdiction for any venture, do not count out Belize until you have truly seen what she has to offer. Being relatively new, and less established, is not synonymous with being of little, or no value, or lacking in potential.

Actually, it might be just the opposite. It may be the chance to write a chapter in financial history as a great pioneer, and in Belizean history as a mogul of the financial sector. Ultimately, only you can tell if Belize is the place for you. Remember, it is all a matter of perspectives. How do you see the glass of water called Belize: half empty, or half full?

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