WILLEMSTAD – Banks on Curaçao are calling on the Curaçao Parliament to postpone the introduction of new legislation regulating online and digital payment services. According to the banking sector, the proposed law in its current form could pose risks to the financial system and leaves too many questions unanswered about its impact on customers and financial institutions.
The legislation is intended to establish a regulatory framework for new payment services, including fintech companies and digital applications that process payments or seek access to customers’ bank accounts. However, the Curaçao Bankers Association says that crucial implementing regulations have not yet been finalized.
As a result, banks argue that it remains unclear how supervision would function in practice and what exact obligations would apply to both traditional banks and new market entrants. The sector warns that introducing the law without a complete and clear regulatory framework could increase risks related to privacy and digital security.
Banks also express concern that the law could complicate oversight of money laundering and fraud. Curaçao is already under international scrutiny to strengthen its financial controls, and the banking sector stresses that additional risks should be avoided rather than introduced.
Cost is another major concern. Banks expect they will be required to invest heavily in new IT systems and technology to allow third parties access to payment data and customer accounts. At the same time, they fear that new providers could enter the payment market without being subject to the same regulatory burdens and costs faced by banks.
According to the sector, this could result in unfair competition and weaken the position of local banks. For that reason, the Curaçao Bankers Association is urging Parliament to only consider the law once all implementing rules are in place and the potential consequences for the financial system have been thoroughly examined.