WILLEMSTAD, PHILIPSBURG - Today, the Centrale Bank van Curaçao en Sint Maarten (CBCS) issued the following four AML/CFT/CFP(1) provisions and guidelines (hereinafter: the P&Gs) applicable to the credit institutions and insurance sector as well as the money transfer and trust sector:
• Provisions & Guidelines on Combatting Money Laundering and the Financing of Terrorism & Proliferation for Life Insurance Companies and Intermediaries (Insurance Brokers) Curaçao
• Provisions & Guidelines on Combatting Money Laundering and the Financing of Terrorism & Proliferation for Credit Institutions Curaçao
• Provisions & Guidelines on Combatting Money Laundering and the Financing of Terrorism & Proliferation for Money Transfer Companies Curaçao
• Provisions & Guidelines on Combatting Money Laundering and the Financing of Terrorism & Proliferation for Company (Trust) Service Providers Curaçao
These P&Gs replace the Provisions and Guidelines on the Detection and Deterrence of Money Laundering and Terrorist Financing for credit institutions, insurance companies & insurance intermediaries, company service providers and money transfer companies issued by the CBCS in 2013. They have been finalized after consultations with the different representative organizations which led to various constructive discussions and feedback.
Enforcement
The P&Gs are issued pursuant to provisions contained in the different national ordinances. Supervised institutions are required to duly observe these P&Gs and take actions to be in compliance. Non-compliance of institutions with these new P&Gs will result in enforcement actions undertaken by the CBCS, such as imposing fines.
P&Gs in line with FATF Recommendations
The issuance of these P&Gs underscores CBCS’ approach based upon its New Style of Supervision towards more intrusive and focused supervision, with the objective to be fully compliant with international standards and good practices for the financial sector - in this particular case the FATF Recommendations. Consequently, new requirements have been introduced in the P&Gs to be in compliance with FATF Recommendations.
Risk Assessment
Supervised institutions must have processes in place to identify, assess, monitor, manage and mitigate money laundering and terrorist financing risks of their business. CBCS developed a Guidance paper on the Systematic AML/CFT/CFP Risk Assessment (SARA). The SARA was put for consultation with the sector and was adapted based on comments received from the sector.
Revised P&Gs for remaining sector
CBCS is currently working on provisions and guidelines for the remaining sectors in Curaçao and for the sectors in Sint Maarten. The same requirements as contained in the P&Gs will be applicable for the remaining sectors in Curaçao. As the legal basis for Sint Maarten is different there might be slight differences in the content of the provisions and guidelines for Sint Maarten.
(1) Anti-Money Laundering / Countering the Financing of Terrorism / Countering the Financing of Proliferation of weapons of mass destruction