Belize Companies & Corporate Affairs Registry Launches Informational Campaign on the Moveable Property Security Rights Act

The Belize Companies & Corporate Affairs Registry (BCCAR) and the Financial Services Commission (FSC) have launched its informational campaign on the Moveable Property Security Rights Act. This new legal framework was highlighted during a webinar earlier today titled, “Bridging Gaps in Credit Access with the Movable Property Security Rights Framework”.  It is a legislation that seeks to revolutionize the way businesses secure loans by allowing them to use movable assets as collateral. The Act establishes a Collateral Registry System, an electronic platform where lenders can register and verify security interests in movable assets such as machinery, vehicles, crops, and even intangible assets like receivables and intellectual property. This framework is not just about improving access to credit; it’s about fostering economic growth and innovation. By enabling businesses to leverage their movable assets, we are empowering entrepreneurs to grow, innovate, and ensure the longevity of their enterprises. Speaker at the webinar, Nicole Garraway explained that the framework is being customized to fit Belize.

Nicole Garraway, Speaker: “This new framework, this new legislative framework, it is in fact new, you know, and with any other legal framework when you implement it you would learn and see, you know, what exactly is required given the environment we operate. Yes, for the person who posed that question, you are in fact very correct. There were two other areas included in the law. Upon implementing the Act and, you know, upon the registry getting up and running we have realized that there are a lot of, there’s a lot of interest and a lot of persons are in fact looking to leverage vessels and so forth. And that was not originally anticipated in that way. So owing to that we are reviewing the framework to see how best we can ensure that one, we do not cause any conflicts with any other existing regimes. But we also take into consideration the realities of Belize. So noting that and noting and I don’t want to say the confusion, but noting that it has created some doubts, you know, in person’s minds in terms of how exactly to apply it. We decided to exclude it here and just also to further note that we are reviewing the legislative framework to see what we can carve out, so to speak, that would be best for the context of Belize.”

The Movable Property Security Rights Act introduces several innovative features such as Broad coverage, electronic collateral registry, legal certainty, and priority rules. This will be able to benefit businesses, lenders and the greater economy. By promoting financial inclusion and encouraging investment, the Act is expected to drive economic diversification and growth. Speaker Tira Greene explained that this new registry fits international standard. 

Tira Greene, Speaker: “I was going to add to that, you know, that is the best practice now for registries. Before when you had a manual registry persons were able to go because it wasn’t computerized, so you had no choice but to give them your books and they would go and look through it. Of course now in terms of electronic registration you can’t give those rights because we have data privacy issues. We just can’t have somebody basically accessing the entire registry, the data of everyone, everyone’s names, their addresses, you know, very personal data. So that is in keeping with the modern best practices for companies and other registries.”

The act was first introduced in November 2024.