WILLEMSTAD – The Central Bank of Curaçao and Sint Maarten (CBCS) is warning financial institutions and consumers about the risks of dealing with companies that offer financial services without official authorization.
The warning comes as the regulator announces a stronger enforcement approach against unauthorized providers operating in sectors such as banking, money transfers, insurance, trust services and investment activities.
The CBCS emphasized that companies operating outside the supervision framework may not follow important safeguards designed to protect the financial system. These include rules requiring proper identification of clients, monitoring of transactions and reporting of suspicious activities.
According to the Central Bank, unregulated providers can create vulnerabilities that may be exploited for illegal activities, including money laundering and terrorism financing.
Licensed financial institutions also have responsibilities in preventing these risks. The CBCS said supervised entities must take adequate measures to avoid entering into business relationships with companies that do not have the required authorization.
If there is doubt about whether a company is legally allowed to provide financial services, institutions are expected to carry out enhanced checks before establishing or continuing a business relationship.
The Central Bank is urging members of the public to verify the status of financial service providers through the official CBCS register before signing agreements or transferring funds.
The regulator said its updated enforcement policy will allow it to use several tools, including public warnings, administrative penalties and legal referrals in serious cases.
In the most severe situations, suspected violations may be reported to the Public Prosecutor’s Office for further action.
The CBCS has not provided details about specific investigations or possible offenders but stressed that protecting consumers and maintaining confidence in the financial system remain priorities.