WILLEMSTAD - Curaçao's new basic payment account for financial inclusion will have a monthly deposit limit of 3,000 guilders. The government set this cap to prevent misuse, such as money laundering. The account is designed for individuals who previously faced challenges in opening a bank account, but the deposit limit has raised questions about its practicality for this target group.
During parliamentary discussions on the legislation, it was clarified that the deposit cap aims to mitigate risks for banks. The Central Bank of Curaçao and Sint Maarten (CBCS), rather than commercial banks, determined the 3,000-guilder threshold. This limit aligns with research indicating that over 80% of the population earns less than this amount monthly.
However, some parliamentarians expressed concerns that the limit might be too low for individuals paid in cash, complicating efforts to manage their entire income through the bank. Additionally, questions arose about how this policy would prevent cartel formation among banks and safeguard financial freedom.
Essential Services Only
The basic payment account will offer only essential banking services, such as paying rent and utility bills, excluding features like credit cards. It aims to provide a basic level of financial accessibility without enabling misuse.
Eligibility and Limitations
One key limitation is that the account will only be available to legal residents of Curaçao, excluding undocumented individuals. Despite suggestions to include this group to promote financial transparency, the policy remains restrictive.
Additionally, users will not be able to link a savings account to the basic payment account. This omission, intended to keep the account focused on essential services, has been criticized by some parliamentarians as a missed opportunity to encourage financial independence.
Exclusions for the Gaming Sector
The account is not intended for entrepreneurs in the gaming industry, who often face challenges accessing banking services. The government is developing a separate regulatory framework for this group through a new type of financial service provider. Another proposal under consideration is the establishment of a national bank to improve financial inclusion, though the government currently prefers collaborating with existing institutions.
Awareness Campaign and Oversight
To ensure a smooth rollout, the government will launch an awareness campaign in partnership with financial institutions and consumer organizations. The campaign will educate citizens about their rights and the opportunities offered by the basic payment account.
The CBCS will oversee compliance and handle complaints from consumers denied access to the account without valid reasons. The initiative is seen as a step toward enhancing financial inclusion, though its limitations continue to generate debate.