Belize Bank Limited has been granted an interim injunction against the enforcement of Practice Direction No. 7 – Regulation of Fees and Charges (PD No. 7) by the Central Bank of Belize. This injunction temporarily suspends the implementation of PD No. 7 until a court ruling is made on its applicability.
In a press release from the Central Bank of Belize, it was revealed that PD No. 7 was announced during a press briefing on December 19 and was set to take effect on January 2. The central bank issued PD No.7 under Section 9 of the Domestic Banks and Financial Institutions Act with the objective to regulate fees imposed by domestic banks on customers. The fees subject to PD No. 7 include those on dormant accounts, account closures, salary release/cancellations, savings account maintenance, transfers within the same bank and loan payment waivers, which are limited to $0.00 under this directive. Additionally, own network ATM withdrawal fees are capped at a maximum of $0.25 per transaction.
The Central Bank's press release also quoted Governor Kareem Michael as saying that the aim is to "enhance financial inclusivity by reducing barriers and fostering a fair and ethical financial system."
In response, Belize Bank issued a press release stating that PD No. 7 "would impose counterproductive, arbitrary and unprecedented price controls on services offered by Belizean banks to customers." Consequently, it obtained an interim injunction preventing the central bank from implementing it on January 2nd pending a full hearing scheduled at the Supreme Court in February.
According to Belize Bank's press release, Executive Chairman Filippo Alario expressed his belief that price controls ultimately harm consumers. He stated: "Other fees and charges in question are essential for banks to support critical functions, including mounting costs of cyber-security, financial crimes and anti-money laundering compliance, as well as the upkeep of both digital and physical infrastructure. These financial components also play a vital role in driving innovation, exemplified by initiatives such as our digital wallet, ‘E-kyash,’ which enables customers to make electronic payments easily and cheaply from their mobile phones."