Regulatory Alerts2020-01-24
Deposit Insurance Act, 2020
Enacted by the Parliament of Belize, this legislation establishes a Deposit Insurance Corporation and a dedicated Deposit Insurance Fund to safeguard insured deposits held at domestic banks and credit unions. The Act mandates compulsory membership and premium contributions from all licensed financial institutions, while granting the Corporation authority to manage fund assets, calculate premiums, and disburse compensation following covered events such as institutional liquidation or license revocation. It further ensures the Corporation's operational independence from the government and central bank, sets a target minimum fund coverage ratio of four percent within ten years, and establishes penalties for non-compliance and falsification of deposit information.