Financial Crime World

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Financial Sector Environment and Anti-Money Laundering (AML) Policies in Netherlands Antilles

Economic Performance

The economy of the Netherlands Antilles has shown improvements in recent years, with growth expected in 2003. However, it has also been affected by a prolonged recession and external shocks.

  • The economic performance of the Netherlands Antilles has been marked by both improvement and challenges.
  • Growth is expected in 2003, but the economy has faced a prolonged recession and external shocks.

Public Finances

The central government deficit has increased sharply, reaching a historical high of 5½ percent of GDP in 2001. This was partly due to falling revenue collection and increased interest expenditure.

  • The central government deficit has risen significantly.
  • Falling revenue collection and increased interest expenditure have contributed to this trend.

External Accounts

The current account deficit has improved slightly over 2002, boosted by increased tourism inflows and growth in the Curaçao Free Zone. Foreign reserves have also increased to the central bank target of three months of imports.

  • The current account deficit has shown some improvement.
  • Increased tourism inflows and growth in the Curaçao Free Zone have contributed to this trend.
  • Foreign reserves have reached the central bank target.

Financial Sector Environment

The Netherlands Antilles have a well-developed legal and regulatory framework for financial sector supervision. The BNA is responsible for banking, insurance, pension fund, and mutual fund supervision, and has strict licensing policies for onshore as well as offshore financial institutions.

  • The Netherlands Antilles have a robust legal and regulatory framework.
  • Strict licensing policies are in place for financial institutions.
  • Supervision is carried out by the BNA.

AML/CFT

The authorities are proactive in developing new techniques and policies to combat money laundering and terrorist financing. They are also undertaking efforts to strengthen standards against terrorist finance with other parts of the Kingdom of the Netherlands.

  • The authorities are taking proactive steps to combat money laundering and terrorist financing.
  • Efforts are being made to strengthen standards against terrorist finance.
  • Collaboration is taking place within the Kingdom of the Netherlands.

Business Environment

Traditionally, the business environment has operated under a regime of relatively little disclosure. However, under international pressure and awareness of the importance of better quality financial sector supervision, there is an increasing need for more disclosure to comply with international standards.

  • The business environment has traditionally been characterized by limited disclosure.
  • International pressure and awareness are driving the need for more disclosure.
  • Compliance with international standards is a key consideration.

Regulatory Changes

Company service providers have been placed under supervision of the Supervisory Board for Fiduciary Business, which will oblige them to apply Know Your Customer (KYC) rules and report unusual transactions to the authorities.

  • Company service providers are now subject to supervision.
  • KYC rules must be applied, and unusual transactions reported.
  • The Supervisory Board for Fiduciary Business is responsible for oversight.