WILLEMSTAD – The Central Bank of Curaçao and Sint Maarten (CBCS) is tightening its approach toward companies that provide financial services without the required licenses. The regulator announced that it will make greater use of enforcement measures, including penalty payments, administrative fines and public warnings.
The stricter approach applies to various areas of the financial sector, including banks and other credit institutions, money transfer companies, insurers and insurance intermediaries, trust service providers, investment institutions and their managers.
According to the CBCS, illegal financial service providers pose risks to consumers and the integrity of the financial system because they operate outside the regulatory framework. Without supervision, these companies may fail to comply with requirements related to customer due diligence, transaction monitoring and the reporting of unusual transactions.
The Central Bank warned that such gaps can create opportunities for financial crimes, including money laundering and the financing of terrorism.
Under the strengthened enforcement policy, the CBCS can impose corrective measures such as an order subject to a penalty payment, requiring companies to stop violations. In addition, the regulator can impose administrative fines intended to punish breaches of financial regulations.
The CBCS stated that both measures can be applied simultaneously when necessary.
The regulator is also calling on licensed financial institutions to remain vigilant. Companies under supervision must ensure that they do not establish business relationships with illegal providers. When there is uncertainty about whether a company is properly licensed, financial institutions are expected to conduct additional and enhanced customer due diligence.
Consumers and businesses are encouraged to check the CBCS public register before entering into agreements with financial service providers to verify whether a company has the required license or exemption.
The CBCS did not disclose how many unlicensed financial service providers are currently operating in Curaçao and Sint Maarten, how many investigations are ongoing, or whether sanctions have already been imposed. The regulator also did not identify any companies suspected of violations.
The announcement forms part of a broader effort by the CBCS to apply its supervisory and enforcement policies more consistently across the financial sector.