• Search

Regulatory Framework

Frequently Asked Questions

Financial Integrity supervision entails more than simply seeking compliance by the supervised institutions with financial laws and regulations; it also seeks compliance by the supervised institutions with the norms and values established within the financial sector, such as: company ethics, self regulation, and social morals and values. Financial Integrity supervision thus focuses on the compliance function with respect to said standards more specifically, on the (corrective) measures for risk containment to promote and maintain the integrity within its each institution.

Credit institutions allowed to operate in Curacao and Sint Maarten hold either a license or dispensation from the Bank to operate as such. They are listed in one of the sun divisions of the credit institution's register maintained by the Bank. Please refer to Link: Regulatory Framework-Registers.

No, A Deposit Insurance Scheme has not yet been introduced for Curacao and Sint Maarten. However, efforts to introduce such a system are being undertaken in consultation with the respective relevant parties.

The Centrale Bank van Curacao en Sint Maarten(the Bank) supervises all credit institutions licensed to carry out banking activities and monitors among other things compliance of those institutions with applicable laws and regulations. However, the Bank cannot guarantee that an institution will never run into difficulties and consequently fails.

According to article 45, section 1 of the National Ordinance on the Supervision of Banking and Credit Institutions 1994 (N.G. 1994, no. 4) it is forbidden for anyone to directly or indirectly apply to the public to raise funds or to grant credits without prior permission of the Bank. Consequently, every person or entity that wants to engage into credit extension activities or the raising of funds from the public will need a dispensation from the prohibition in section 1 of article 45 the aforementioned National Ordinance.

The Bank in principle does not mediate in the disputes between a credit institution and their individual customers. Nevertheless, it is important that the Bank be informed of the nature of a dispute with a credit institution. General patterns of complaints are taking into account for supervisory purposes.

The Bank is forbidden by law to share information obtained from financial institutions under its supervision with other parties. However, the Bank can use data and information obtained to compile information for publication provided that such information cannot be traced back to an individual financial institution.

All money transfer companies operating in Curaçao and Sint Maarten require permission from the Bank to provide money transfer services. The money transfer companies operating in Curaçao and Sint Maarten are regulated as follows:

Curaçao

As per March 1, 2015 the National Ordinance on the Supervision of Money Transfer Companies 2014 (N.G. 2014, no. 86) came into effect in Curaçao and pursuant to article 2 paragraph 1 of this National Ordinance a money transfer company is required to obtain a license from the Central Bank in order to carry on the business of a money transfer company. Together with the license a money transfer company is required to obtain an authorization to carry out transactions mentioned in article 10 paragraph 1 of the Foreign Exchange Regulation Curaçao and Sint Maarten (2010).

Sint Maarten

A money transfer company is required to obtain an authorization to carry out transactions mentioned in article 10 paragraph 1 of the Foreign Exchange Regulation Curaçao and Sint Maarten (2010) in order to provide money transfer services in Sint Maarten. The legal framework to regulate these companies is still pending in Sint Maarten.

In the meantime, the Central Bank does not entertain any new application for the conduct of money transfer activities in Sint Maarten until the regulatory framework is implemented.

Curacao and Sint Maarten have not yet introduced the legal prohibition of linked transactions. However, the Bank will instruct financial institutions to abort this practice if this is noticed. The Bank will be introducing rules and regulations for the financial institutions under its supervision on market conduct in the near future. Prohibition of linked transactions will be part of these rules and regulations.

Last updated: 30.09.2019 12:09