WILLEMSTAD – The Central Bank of Curaçao and Sint Maarten (CBCS) has issued an official warning to both consumers and providers of digital payment services, amid growing concerns over the rapid rise in the use of Payment Service Providers (PSPs). These platforms allow for the digital transfer of money, including international transactions, and are becoming increasingly popular across the islands.
While acknowledging that PSPs play an important role in enhancing access to financial services and encouraging technological innovation, the CBCS cautions that the sector currently operates without regulatory oversight. This is due to the fact that the proposed National Ordinance on the Supervision of Payment Service Providers has yet to be enacted.
As a result, consumers using these services currently lack legal protection should something go wrong. The Central Bank is urging users to exercise caution by thoroughly researching the companies they deal with and carefully reviewing terms and privacy policies before engaging in transactions. The bank warns that without these precautions, users risk exposing their personal data or finances to potential fraud.
In addition to advising consumers, the CBCS is also alerting digital payment service providers to upcoming regulatory obligations. As of June 25, 2024, all PSPs, including digital currency providers and electronic money institutions, will be required to register with the Central Bank. This registration process is part of a broader initiative to combat money laundering and the financing of terrorism.
Non-compliance with these new requirements could result in legal consequences and sanctions, the Bank emphasized.
The CBCS reiterated its commitment to supporting financial innovation, but stressed that such progress must be pursued in a safe and responsible manner.