Interview with Reynaldo Magaña, Chairman of Finance Belize

11 Mar Interview with Reynaldo Magaña, Chairman of Finance Belize

What do you see as the main drivers behind the country’s financial services growth and what is the outlook for Belize’s financial sector?

Before 2018, many offshore financial jurisdictions operated unchecked, lacking regulatory structure and compliance with international standards. That year marked a turning point for Belize as we were forced to align with G20, EU and OECD mandates, removing harmful tax practices from our tax regime, enhancing transparency and strengthening anti-money laundering laws. These changes not only brought us in line with global standards but also created opportunities to improve our financial products and attract more business to the country. Unlike smaller jurisdictions like the Cayman Islands or Bermuda, Belize offers far more. Becoming compliant has made us more competitive and visible on the global stage. When the government of the day took office, I was part of an advisory team to the Government focused on improving Belize’s financial sector. Notable outcomes over the years included the launching of the online business registry system, implementing a new securities industry law and regulations, modernizing electronic transaction laws and establishing Finance Belize as the marketing arm for financial services. These initiatives laid the foundation to make Belize more competitive.

Finance Belize seeks to promote the country’s financial services sector internationally. Could you elaborate on the vision and mission of Finance Belize and share some of the key milestones achieved so far?

Finance Belize serves as the marketing and promotion arm for financial services, akin to what the Belize Tourism Board is for tourism. Previously, there was no centralized marketing — banks and service providers operated independently. Recognizing this gap, we are working to rebuild Belize’s reputation as a fully compliant and transparent jurisdiction, while positioning ourselves as innovators in financial services. With the introduction of the Finance Belize Recognition and Exemptions Act, we are now formally recognized by the government, granted tax exemptions and operate under the Financial Services Commission. This empowers us to actively promote Belize’s financial services, enhance visibility, and develop new offerings to attract global interest.

I serve as a commissioner on the Financial Services Commission, a director on the Belize Tourism Board and chairman of the Social Security Investment Committee, overseeing social security investments. Recently, I was appointed to Finance Belize, where I have also worked previously. These roles, combined with over 20 years as a service provider in the industry, have given me a comprehensive view of Belize’s landscape. This experience helps me identify key areas for improvement, develop effective marketing strategies and guide stakeholders to drive progress.

What strategies is Finance Belize implementing to maintain and build investor confidence, particularly in the context of a rapidly changing global economy?

Belize, through the work of the Financial Services Commission and other regulatory bodies, is strengthening Belize’s regulatory framework to boost investor confidence. The implementation of the Securities Industry Act offers business opportunities for many entrepreneurs in this sector and provides investors a secure environment for investments by safeguarding against bad actors. Enhancing regulation is key to attracting foreign direct investment and I anticipate significant growth in Belize’s capital markets within the next three to five years because of these initiatives.

How does Finance Belize plan to continue promoting and strengthening the banking sector, particularly in terms of international collaborations, to support Belize’s broader economic goals?

Belize’s banking sector is primarily centered domestically, with strong performance from commercial banks and credit unions. Recent reports from the central bank show $1 billion in foreign reserves and seven percent economic growth this year, highlighting positive momentum fueled by local investments. On the international side, there is significant potential for growth.

To capitalize on this, Belize needs stronger partnerships with international banks to support projected increase in  demand and to drive further opportunities in the banking sector. Belize has implemented significant legal and regulatory changes, including updates to taxation and anti-money laundering laws to ensure compliance. Looking ahead, Belize is well-prepared for future assessments and is confident in securing clearance as a compliant jurisdiction.

The country’s National Digital Agenda promotes online business registry systems and has streamlined operations as well as improved transparency. How important is investment in technology and digitalization for you?

Belize has made significant progress in adopting fintech tools and modern technologies over the past five years. Government departments, including the Financial Services Commission, are modernizing infrastructure and the online business registry system continues to evolve. These investments aim to simplify doing business, attracting investors and improving Belize’s global rankings. The country is on track to becoming fully digitized to enhance business opportunities. The central bank has made significant strides, including implementing national payment systems that enable digital payments with fiat currency.

While Belize has yet to fully embrace cryptocurrencies, plans are underway to establish the necessary laws and regulations for it. Adoption of digital currencies is inevitable and will be part of Belize’s future. Five years ago, Belize needed to define its identity in the financial sector. While tourism and agriculture were already established, financial services lacked recognition and utility in the global market as this was already dominated by other blue-chip jurisdictions. Part of the strategy to put Belize back on the map and on a level playing field with them, we focused on creating a niche market, such as a holding company regime, offering tax-efficient structures for corporate planning, trusts and estates. Such a regime allows investors to operate in compliance with international tax standards promoting fairness and transparency. We are currently marketing this model, though we remain open to exploring other opportunities in the future.

What is your vision for Finance Belize, the country’s economy and collaborations with global investors and partners in the next 5-10 years?

Finance Belize aims to establish a highly respected, reputable, compliant and transparent jurisdiction known for excellent financial products and services. Our vision is to create an economic pillar that generates jobs, boosts GDP and improves the well-being of Belizeans. Ultimately, we strive to rank among the top financial jurisdictions globally.

We have a long way to go, perhaps within the medium term, to build its talent pool and ensure our education system produces enough finance professionals. Armed with government support we are on track to become competitive with jurisdictions like the Cayman Islands, Bermuda and the British Virgin Islands. While Belize may not have the same international backing as those territories, we have the resources, including land, tourism and government commitment, to succeed and grow into a strong global financial hub.

Belize is open for business, with strong government support and a solid regulatory framework. We are internationally compliant and offer unique financial products like the recently implemented securities industry laws and regulations, which will open up Belize’s capital market. This makes Belize an attractive destination to make secure investments, while enjoying our beautiful country and conducting business with confidence.