Financial Crime World

Financial Sector and Regulatory Environment of the Netherlands Antilles

Economic Environment

The economic environment of the Netherlands Antilles has been impacted by several factors. The country’s high public debt (75% of GDP) has led to decreased confidence in government paper, resulting in a shift towards safer investments such as bank deposits. Additionally, falling real estate values have also affected the economy.

  • Factors affecting the economy:
    • High public debt
    • Decreased confidence in government paper
    • Falling real estate values
    • Increased bank deposits as a perceived safer investment

Banking System

The banking system in the Netherlands Antilles has seen improvements in 2002, including:

  • A decrease in non-performing loans
  • An increase in provisions against such loans
  • Improved oversight and regulation of banks

However, vigilance remains necessary due to the banks’ high exposure to the real estate market and potential spillover effects from Venezuela.

Financial Sector Environment

The Netherlands Antilles has a well-developed and well-functioning legal and regulatory framework for financial sector supervision. The country is proactive in developing new techniques and policies to keep up with international developments, including efforts to strengthen standards against terrorist finance.

  • Key aspects of the financial sector environment:
    • Well-developed and well-functioning legal and regulatory framework
    • Proactive approach to developing new techniques and policies
    • Efforts to strengthen standards against terrorist finance

The Netherlands Antilles has a strong general legal and judicial framework, which includes:

  • Well-trained professionals such as civil law notaries, lawyers, and accountants/auditors who work under established codes of conduct
  • A well-established system for resolving disputes and enforcing contracts

International Assessments

The Netherlands Antilles has been subject to various assessments of their anti-money laundering (AML) policies and practices and financial sector supervision. These assessments include a classification by the Financial Stability Forum as a jurisdiction “generally perceived as not having any major weaknesses in its AML/CFT regime.”

  • Key international assessments:
    • Classification by the Financial Stability Forum
    • Assessment of anti-money laundering (AML) policies and practices
    • Evaluation of financial sector supervision