“The Death of Belize’s Financial System”

NO CONFIDENCE ON BELIZE'S OFFSHORE BANKING - Panamanian offshore expert says offshore banking is dead in Belize.

Local news media reports that the Caporaso & Partners Law Office in Panama, which specializes in offshore and financial legal matters and represents a number of European depositors who claim they are unable to recover their money from the now defunct Choice Bank, published a scathing article claiming Belize’s offshore banking sector is dead due to the ongoing situation with Choice and the fallout from the Sanctuary Bay real estate fraud.

"No one will trust a bank in Belize anymore, after what happened,” Giovanni Caporaso Gottlieb, the firm’s founder said. The firm claims that up to now, Choice has only approved the reimbursment of 53 percent of the deposits declared in the accounts, however, it hasn’t completed all payments.

It said Belize’s financial system is going through one of the most complicated moments of its history with the abrupt closure of two international banks and “heavy accusations of corruption against the governors of the Central Bank and for the inefficiency of its courts.” It also called into question “the nexus between the Governor of the Central Bank, Joy Grant, and Minister of Finance, PM Dean Barrow” which it says “impeded the distribution of assets from being completely fair.”

Several European customers of Choice Bank who are trying desperately to recover their money spoke to a Belize media house but they say the Central Bank has stopped answering requests for answers and the new liquidator has told them they cannot recover their money.

What is the future for Belize’s offshore banking?

Is offshore banking in Belize coming to an end? Offshore banking experts from Caporaso and Partners Law Office in Panama believe so. The law firm attributes this allegation to the recent closure of two offshore banks in Belize, Choice Bank and Atlantic International Bank Limited (AIBL). Even the Belize Chamber of Commerce and Industry (BCCI) is warning the business sector to brace for potential challenges when trying to access foreign exchange in the near future.

Caporaso and Partners law firm addressed the issue with Choice Bank, which closed after irregularities were identified by the Central Bank of Belize. A liquidator was appointed, which according to the Panama based law firm, was to dismiss all of Choice’s personnel and to name in their place, people that were close to the government to undertake an in-depth investigation. The law firm says that the government impeded the fair distribution process of said assets. Allegations are that up to now, the liquidator has approved the reimbursement of 53% of the deposits declared in the accounts, but not all payments have been completed. Most of the affected former Choice Bank’s customers are allegedly Europeans claiming that they have been told that their funds cannot be recovered.

The Central Bank of Belize has not commented on the law firm’s allegations. Regarding the speculations that Scotiabank might stop its operations in Belize, the Central Bank indicated in a press release dated August 16, 2019, that the management of Scotiabank had not sought approval for any sale. In addition, the release stated that Scotiabank, in particular, and Belize’s domestic financial sector in general, have been experiencing a robust cycle of credit, product, and service expansion, accompanied by strength, stability, and profitability. According to the Central Bank, as of July 31, 2019, the domestic financial sector’s assets of banks and credit unions totalled a healthy BZ$4.56 billion.

Click here to read the rest of the article in the San Pedro Sun

Banking is difficult world-wide, and the demise of offshore banks in Belize is truly inconvenient - BUT regarding this article should we not consider the source - a Panamanian legal firm - is there a self-serving agenda ?