Money Laundering in the Netherlands Antilles: A Growing Concern for the EU

The small Caribbean island of Saint Martin, situated between France and the Netherlands, has become a hotspot for money laundering and other illicit activities. The island’s unique status as a haven for international transactions without adequate controls has attracted large sums of cash and facilitated practices such as people trafficking, arms smuggling, and financing terrorist groups like the Taliban.

The Problem with the Dutch Half of Saint Martin

While the French northern half of the island is part of the European Union as an overseas department of Guadeloupe, the Dutch southern half belongs to the Netherlands Antilles, which remains outside of the EU’s territory due to Article 182 of the EC Treaty. This division creates a situation where there are inadequate controls on international transactions and a free movement of people across the 10-kilometer border.

A Lack of Coordination Exacerbates the Problem

The lack of coordination between the two halves of the island has created an environment conducive to money laundering and other crimes. The EU Commission acknowledges this issue and is concerned about the implications for cross-border crime.

EU Concerns and Potential Initiatives

The administration changes in the two parts of the island, including the French part becoming a ‘collectivité d’outre-mer’ and the Netherlands Antilles breaking up into separate territories, may not necessarily address the coordination issues. In response to these concerns, the EU Commission is considering taking initiatives to contribute to resolving the problems.

Key Points:

• The island of Saint Martin has become a hotspot for money laundering and other illicit activities.
• The Dutch southern half of the island belongs to the Netherlands Antilles, which remains outside of the EU’s territory.
• A lack of coordination between the two halves of the island creates an environment conducive to money laundering and other crimes.
• The EU Commission is concerned about the implications for cross-border crime and is considering taking initiatives to address the problem.

The Future of Saint Martin: Ensuring That Its Unique Status Does Not Facilitate Illicit Activities

The ultimate goal is to tackle cross-border crime and ensure that the island’s unique status does not continue to facilitate illicit activities. The EU Commission will need to work closely with the governments of France, the Netherlands, and the new territories emerging from the dissolution of the Netherlands Antilles to resolve this complex issue.