Belize the alternative trust and international financial services centre.

LEGAL REGIME

The political and legal systems are based on the English model and the law is English common law, which is supplemented by local law. There is a Legislative Assembly (Parliament); The British Commonwealth is represented by the Governor General. There are lower and upper courts, the highest of which is the Supreme Court; the Court of Last Resort is the House of Lords in the United Kingdom.

Laws relevant to Belize as an offshore financial center are as follows:

- International Business Companies Act 1990 Amended in 1995 and 2000

- Trusts Act 1992

- Banks and Financial Institutions Act 1995

- Offshore Banking Act 1996

- Money Laundering (Prevention) Regulations 1998

- Protected Cell Companies Act 1999

- International Insurance Act 1999

- International Insurance Regulations 2000

- IFS Practitioners (Code of Conduct) Regulations 2001

TRUST LAW

The trust law is based on the Guernsey Trust Laws of 1989 and was developed and drafted by Milton Grundy and Dr Philip Baker of Grays Inn Chambers, London with the assistance of Allen & Overy in London and American legal advisors.

Prior to the Trust Acts of 1992, the principal trust legislation was the Trusts Act 1923 (CAP 163 of the Revised Laws of Belize). The Trusts Act 1992 repealed the 1923 Act, though this later Act does provide that the 1923 Act should continue to apply to trusts created prior to the commencement of the 1992 Act.

Other Laws that are relevant to trusts in Belize are:

- Law of property Act (CAP 154 of the revised laws of Belize)

- Settled Land Act (UK) 1925

- Public Trustee Act (CAP 161 of the Revised Laws of Belize

- Trust Corporations Act (CAP 162 of the Revised Laws of Belize)

CORPORATE LAW

The corporate law governing the companies used in offshore tax planning is the INTERNATIONAL BUSINESS COMPANIES ACT 1990 as amended in 1995 and 2000.

The IBC Act created a special category of company known as an International Business Company (IBC). The law was enacted to permit asset protection and tax planning.