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| Local AML/Sanctions Information General Information Local Service Providers |
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Please note that the Netherlands Antilles was dissolved in
October 2010 and, subsequently, Curacao and St Maarten
became self-governing countries within the Kingdom of the
Netherlands. We leave the below for your information.
Sanctions:
None applicable
Offshore Jurisdiction Blacklists:
Information unavailable.
US State Department Money Laundering Report - March
2010:
The Netherlands Antilles is considered a regional financial center
and a transshipment point for drugs from South America bound
for the United States and Europe. The Netherlands Antilles is
comprised of the islands of Curacao, Bonaire, Dutch Saint
Maarten, Saba, and Saint Eustatius. The Netherlands Antilles is a
semi-autonomous entity within the Kingdom of the Netherlands
(KON), with control over its internal affairs. The Kingdom retains
authority over defense and foreign affairs. Money laundering is
primarily related to proceeds from illegal narcotics. Money
laundering organizations can take advantage of banking secrecy
and use off-shore banking and incorporation systems, economic
zone areas, and resort/casino complexes to place, layer and
launder drug proceeds. Bulk cash smuggling is a continuing
problem due to the close proximity of the Netherlands Antilles to
South America (Venezuela, Colombia, etc). Additionally,
“contrabanding” (using bulk cash to buy actual products which are
shipped to South America and sold, thus legitimizing the profits)
from an Economic Zone in the Netherlands Antilles is a known
method of laundering in the region. Structuring is a relatively
common occurrence in the Netherlands Antilles, but does not
represent high-level money laundering activity, which is
accomplished almost exclusively through wire transfers between
the Netherlands and the Netherlands Antilles. A significant
offshore sector and loosely regulated free trade zones, as well as
narcotics trafficking and a lack of border control between Saint
Maarten (the Dutch side of the island) and St. Martin (the French
side), create opportunities for money launderers in the
Netherlands Antilles.
Offshore Center: Yes
The Netherlands Antilles has an offshore financial sector which in
2008 had 84 trust service companies providing financial and
administrative services to an international clientele, which includes
offshore companies, mutual funds, and international finance
companies. As of September 2007, there were a total of 14,191
offshore companies registered with the Chamber of Commerce in
the Netherlands Antilles, as is required by law. The laws and
regulations on bank supervision provide that international banks
must have a physical presence and maintain records on the
island. The Netherlands Antilles permits Internet gaming
companies to be licensed on the islands. In 2008, there were four
operator member and nine non-operator member licensed
Internet gaming companies.
Free Trade Zones: Yes
In February 2001, the Government of the Netherlands Antilles
(GONA) approved proposed amendments to the free zone law to
allow e-commerce activities into these areas (National Ordinance
Economic Zone no.18, 2001). Goods no longer have to be
physically present within the free trade zone (FTZ) as was
required under the former free zone law. Seven areas in the
Netherlands Antilles qualify as “Economic Zones” (e-zones), five
of which are designated for e-commerce. The remaining two e-
zones, located at the Curacao airport and harbor, are designated
for goods. These zones are minimally regulated. In 2009 the FTZ
authority (Curinde), in cooperation with other entities, introduced
an anti-money laundering manual for the FTZ. The manual was
made in anticipation of the possible introduction of regulatory laws
by the local government.
Criminalizes narcotics money laundering: Yes
Money laundering was outlawed in 1999, but the statute required
a specific unlawful act to institute a statutory penalty.
Criminalizes other money laundering, including terrorism-related:
Yes
Money laundering is a criminal offense in the Netherlands Antilles
pursuant to the National Ordinance on the penalization of
terrorism, terrorism financing and money laundering. The law
applies to all criminal offenses, including drug-related money
laundering. Netherlands Antilles takes an “all rimes” approach, i.
e., all acts which are indicated as crimes in the Criminal Code.
Criminalizes terrorist financing: Yes
The Criminal Code of the Netherlands Antilles has been amended
to include terrorist financing as a criminal act. The National
Ordinance on the penalization of terrorism, terrorism financing
and money laundering (O.G. 2008, no. 46) entered into force in
June 2008.
Know-your-customer rules: Yes
The National Ordinance Identification when rendering both
financial and non-financial services (O.G. 1996, no. 23) requires
customer identification. International corporations may be
registered using bearer shares. Either the bank or the company
service providers maintain copies of bearer share certificates for
international corporations, which include information on the
beneficial owner(s). Bearer shares are not permitted in the
insurance sector.
Bank records retention: Yes
Banks are required to maintain records for ten years and all other
financial intermediaries must maintain records for five years.
Suspicious transaction reporting: Yes
National Ordinance Reporting of Unusual Transactions (O.G.
1996, no. 21) requires both bank and non-bank financial
institutions, such as company service providers and insurance
companies, to report suspicious transactions to the FIU.
Amendments to the Ordinance in 2009 added designated non-
financial businesses and professions, including lawyers,
accountants, notaries, jewelers and real estate agents to the list
of entities obligated by law to report unusual transactions to the
FIU. Obligated entities also are required to report suspected
terrorist financing activity. In 2008, approximately 20,000 unusual
transactions (a lower standard than “suspicious” transactions)
were reported to the FIU, and approximately 4,000 suspicious
transactions were disseminated to the Public Prosecutors Office.
Large currency transaction reporting: Yes
Depending on the sector and the type of transaction, obligated
entities also are required to report cash transactions over NAF
20,000 (approximately $10,000) and NAF 250,000 (approximately
$142,000).
Narcotics asset seizure and forfeiture:
In 2000, the GONA enacted the National Ordinance on Freezing,
Seizing and Forfeiture of Assets Derived from Crime. The law
allows the prosecutor to seize the proceeds of any crime proven
in court. Civil forfeiture is not permitted. The GONA enacted
legislation in 2002 allowing a judge or prosecutor to freeze assets
related to the Taliban and Usama Bin Ladin, as well as all persons
and companies connected with them. The legislation contains a
list of individuals and organizations suspected of terrorism. The
Central Bank instructed financial institutions to query their
databases and to immediately freeze any assets found. In
October 2002, the Central Bank instructed the financial
institutions under its supervision to continue these efforts and to
consult the UN website for updates to the list.
Narcotics asset sharing authority:
The Agreement between the KON and the United States of
America regarding mutual cooperation in the tracing, freezing,
seizure, and forfeiture of proceeds and instrumentalities of crime
and the sharing of forfeited assets is extended to the Netherland
Antilles.
Cross-border currency transportation requirements: Yes
National Ordinance Obligation to Report Cross-Frontier Money
Transportations (O.G. 2002, no. 74) requires everyone entering
or leaving one of the island territories of the Netherlands Antilles
to report to customs officials money equal to or exceeding NAF
20,000 (approximately $10,000). The Customs Officials will
immediately forward these reports to the FIU.
Cooperation with foreign governments (including refusals):
Pursuant to article 7, paragraph 2, of the National Ordinance
Reporting Unusual Transactions, the furnishing of data to foreign
authorities shall take place only by treaty or an administrative
agreement.
U.S. or international sanctions or penalties: No
Enforcement and implementation issues and comments:
Law enforcement agencies conducted various investigations
which resulted in two Economic Zone companies being charged
with money laundering in 2008-2009. Several companies, their
directors, and other associates were convicted in court on money
laundering and drug trafficking charges.
There have been limited seizures of bulk cash of several
thousand dollar increments throughout the past year which
intelligence reflects were en route to South America or inbound to
one of the e-zone facilities.
U.S.-related currency transactions:
No information available.
Records exchange mechanism with U.S.:
The Mutual Legal Assistance Treaty between the KON and the U.
S. applies to the Netherlands Antilles; however, the treaty is not
applicable to requests for assistance relating to fiscal offenses
addressed to the Netherlands Antilles. A tax information exchange
agreement (TIEA) between the KON and the U.S. with regard to
the Netherlands Antilles, signed in 2002, entered into force in
March 2007. The FIU of the Netherlands Antilles has signed a
memorandum of understanding (MOU) with FinCEN, the FIU of the
United States.
International agreements:
The Netherland Antilles is a party to the Agreement between the
KON and the Republic of Venezuela regarding the prevention,
control and combating of the abuse of, the illicit trade in and the
illicit production of narcotics, psychotropic substances and related
chemical assets The FIU of the Netherlands Antilles has
expanded its international information network to 46 countries; no
MOU is needed for the exchange of information with other Egmont
recognized FIUs.
In cooperation with Antillean authorities, Dutch officials from the
Netherlands established the Hit and Run Money Laundering
(HARM) Team during 2003. Since its inception, the team has
concentrated on identification of the most prominent launderers,
their means of laundering money, and law enforcement
cooperation.
Netherlands Antilles is a party to:
* the UN Convention for the Suppression of the Financing of
Terrorism - Yes
* the UN Convention against Transnational Organized Crime - Yes
* the 1988 UN Drug Convention - Yes
* the UN Convention against Corruption - No
The KON has not yet extended ratification of the UN Convention
against Corruption to the Netherlands Antilles.
Netherland Antilles is a member of the Caribbean Financial Action
Task Force, a Financial Action Task Force-style regional body. Its
most recent mutual evaluation can be found here: http://www.cfatf-
gafic.org/mutual-evaluation-reports.html
Recommendations:
The Government of the Netherlands Antilles (GONA) has
demonstrated a commitment to combating money laundering. The
Netherlands Antilles should continue its focus on increasing
regulation and supervision of the offshore sector and free trade
zones, as well as pursuing money laundering investigations and
prosecutions. The GONA should ensure that anti-money
laundering regulations and reporting requirements are fully
implemented for designated non-financial businesses and
professions. The Netherlands Antilles should work to fully develop
its capacity to investigate and prosecute money laundering and
terrorist financing cases.
October 2010 and, subsequently, Curacao and St Maarten
became self-governing countries within the Kingdom of the
Netherlands. We leave the below for your information.
Sanctions:
None applicable
Offshore Jurisdiction Blacklists:
Information unavailable.
US State Department Money Laundering Report - March
2010:
The Netherlands Antilles is considered a regional financial center
and a transshipment point for drugs from South America bound
for the United States and Europe. The Netherlands Antilles is
comprised of the islands of Curacao, Bonaire, Dutch Saint
Maarten, Saba, and Saint Eustatius. The Netherlands Antilles is a
semi-autonomous entity within the Kingdom of the Netherlands
(KON), with control over its internal affairs. The Kingdom retains
authority over defense and foreign affairs. Money laundering is
primarily related to proceeds from illegal narcotics. Money
laundering organizations can take advantage of banking secrecy
and use off-shore banking and incorporation systems, economic
zone areas, and resort/casino complexes to place, layer and
launder drug proceeds. Bulk cash smuggling is a continuing
problem due to the close proximity of the Netherlands Antilles to
South America (Venezuela, Colombia, etc). Additionally,
“contrabanding” (using bulk cash to buy actual products which are
shipped to South America and sold, thus legitimizing the profits)
from an Economic Zone in the Netherlands Antilles is a known
method of laundering in the region. Structuring is a relatively
common occurrence in the Netherlands Antilles, but does not
represent high-level money laundering activity, which is
accomplished almost exclusively through wire transfers between
the Netherlands and the Netherlands Antilles. A significant
offshore sector and loosely regulated free trade zones, as well as
narcotics trafficking and a lack of border control between Saint
Maarten (the Dutch side of the island) and St. Martin (the French
side), create opportunities for money launderers in the
Netherlands Antilles.
Offshore Center: Yes
The Netherlands Antilles has an offshore financial sector which in
2008 had 84 trust service companies providing financial and
administrative services to an international clientele, which includes
offshore companies, mutual funds, and international finance
companies. As of September 2007, there were a total of 14,191
offshore companies registered with the Chamber of Commerce in
the Netherlands Antilles, as is required by law. The laws and
regulations on bank supervision provide that international banks
must have a physical presence and maintain records on the
island. The Netherlands Antilles permits Internet gaming
companies to be licensed on the islands. In 2008, there were four
operator member and nine non-operator member licensed
Internet gaming companies.
Free Trade Zones: Yes
In February 2001, the Government of the Netherlands Antilles
(GONA) approved proposed amendments to the free zone law to
allow e-commerce activities into these areas (National Ordinance
Economic Zone no.18, 2001). Goods no longer have to be
physically present within the free trade zone (FTZ) as was
required under the former free zone law. Seven areas in the
Netherlands Antilles qualify as “Economic Zones” (e-zones), five
of which are designated for e-commerce. The remaining two e-
zones, located at the Curacao airport and harbor, are designated
for goods. These zones are minimally regulated. In 2009 the FTZ
authority (Curinde), in cooperation with other entities, introduced
an anti-money laundering manual for the FTZ. The manual was
made in anticipation of the possible introduction of regulatory laws
by the local government.
Criminalizes narcotics money laundering: Yes
Money laundering was outlawed in 1999, but the statute required
a specific unlawful act to institute a statutory penalty.
Criminalizes other money laundering, including terrorism-related:
Yes
Money laundering is a criminal offense in the Netherlands Antilles
pursuant to the National Ordinance on the penalization of
terrorism, terrorism financing and money laundering. The law
applies to all criminal offenses, including drug-related money
laundering. Netherlands Antilles takes an “all rimes” approach, i.
e., all acts which are indicated as crimes in the Criminal Code.
Criminalizes terrorist financing: Yes
The Criminal Code of the Netherlands Antilles has been amended
to include terrorist financing as a criminal act. The National
Ordinance on the penalization of terrorism, terrorism financing
and money laundering (O.G. 2008, no. 46) entered into force in
June 2008.
Know-your-customer rules: Yes
The National Ordinance Identification when rendering both
financial and non-financial services (O.G. 1996, no. 23) requires
customer identification. International corporations may be
registered using bearer shares. Either the bank or the company
service providers maintain copies of bearer share certificates for
international corporations, which include information on the
beneficial owner(s). Bearer shares are not permitted in the
insurance sector.
Bank records retention: Yes
Banks are required to maintain records for ten years and all other
financial intermediaries must maintain records for five years.
Suspicious transaction reporting: Yes
National Ordinance Reporting of Unusual Transactions (O.G.
1996, no. 21) requires both bank and non-bank financial
institutions, such as company service providers and insurance
companies, to report suspicious transactions to the FIU.
Amendments to the Ordinance in 2009 added designated non-
financial businesses and professions, including lawyers,
accountants, notaries, jewelers and real estate agents to the list
of entities obligated by law to report unusual transactions to the
FIU. Obligated entities also are required to report suspected
terrorist financing activity. In 2008, approximately 20,000 unusual
transactions (a lower standard than “suspicious” transactions)
were reported to the FIU, and approximately 4,000 suspicious
transactions were disseminated to the Public Prosecutors Office.
Large currency transaction reporting: Yes
Depending on the sector and the type of transaction, obligated
entities also are required to report cash transactions over NAF
20,000 (approximately $10,000) and NAF 250,000 (approximately
$142,000).
Narcotics asset seizure and forfeiture:
In 2000, the GONA enacted the National Ordinance on Freezing,
Seizing and Forfeiture of Assets Derived from Crime. The law
allows the prosecutor to seize the proceeds of any crime proven
in court. Civil forfeiture is not permitted. The GONA enacted
legislation in 2002 allowing a judge or prosecutor to freeze assets
related to the Taliban and Usama Bin Ladin, as well as all persons
and companies connected with them. The legislation contains a
list of individuals and organizations suspected of terrorism. The
Central Bank instructed financial institutions to query their
databases and to immediately freeze any assets found. In
October 2002, the Central Bank instructed the financial
institutions under its supervision to continue these efforts and to
consult the UN website for updates to the list.
Narcotics asset sharing authority:
The Agreement between the KON and the United States of
America regarding mutual cooperation in the tracing, freezing,
seizure, and forfeiture of proceeds and instrumentalities of crime
and the sharing of forfeited assets is extended to the Netherland
Antilles.
Cross-border currency transportation requirements: Yes
National Ordinance Obligation to Report Cross-Frontier Money
Transportations (O.G. 2002, no. 74) requires everyone entering
or leaving one of the island territories of the Netherlands Antilles
to report to customs officials money equal to or exceeding NAF
20,000 (approximately $10,000). The Customs Officials will
immediately forward these reports to the FIU.
Cooperation with foreign governments (including refusals):
Pursuant to article 7, paragraph 2, of the National Ordinance
Reporting Unusual Transactions, the furnishing of data to foreign
authorities shall take place only by treaty or an administrative
agreement.
U.S. or international sanctions or penalties: No
Enforcement and implementation issues and comments:
Law enforcement agencies conducted various investigations
which resulted in two Economic Zone companies being charged
with money laundering in 2008-2009. Several companies, their
directors, and other associates were convicted in court on money
laundering and drug trafficking charges.
There have been limited seizures of bulk cash of several
thousand dollar increments throughout the past year which
intelligence reflects were en route to South America or inbound to
one of the e-zone facilities.
U.S.-related currency transactions:
No information available.
Records exchange mechanism with U.S.:
The Mutual Legal Assistance Treaty between the KON and the U.
S. applies to the Netherlands Antilles; however, the treaty is not
applicable to requests for assistance relating to fiscal offenses
addressed to the Netherlands Antilles. A tax information exchange
agreement (TIEA) between the KON and the U.S. with regard to
the Netherlands Antilles, signed in 2002, entered into force in
March 2007. The FIU of the Netherlands Antilles has signed a
memorandum of understanding (MOU) with FinCEN, the FIU of the
United States.
International agreements:
The Netherland Antilles is a party to the Agreement between the
KON and the Republic of Venezuela regarding the prevention,
control and combating of the abuse of, the illicit trade in and the
illicit production of narcotics, psychotropic substances and related
chemical assets The FIU of the Netherlands Antilles has
expanded its international information network to 46 countries; no
MOU is needed for the exchange of information with other Egmont
recognized FIUs.
In cooperation with Antillean authorities, Dutch officials from the
Netherlands established the Hit and Run Money Laundering
(HARM) Team during 2003. Since its inception, the team has
concentrated on identification of the most prominent launderers,
their means of laundering money, and law enforcement
cooperation.
Netherlands Antilles is a party to:
* the UN Convention for the Suppression of the Financing of
Terrorism - Yes
* the UN Convention against Transnational Organized Crime - Yes
* the 1988 UN Drug Convention - Yes
* the UN Convention against Corruption - No
The KON has not yet extended ratification of the UN Convention
against Corruption to the Netherlands Antilles.
Netherland Antilles is a member of the Caribbean Financial Action
Task Force, a Financial Action Task Force-style regional body. Its
most recent mutual evaluation can be found here: http://www.cfatf-
gafic.org/mutual-evaluation-reports.html
Recommendations:
The Government of the Netherlands Antilles (GONA) has
demonstrated a commitment to combating money laundering. The
Netherlands Antilles should continue its focus on increasing
regulation and supervision of the offshore sector and free trade
zones, as well as pursuing money laundering investigations and
prosecutions. The GONA should ensure that anti-money
laundering regulations and reporting requirements are fully
implemented for designated non-financial businesses and
professions. The Netherlands Antilles should work to fully develop
its capacity to investigate and prosecute money laundering and
terrorist financing cases.
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| NETHERLANDS ANTILLES |
| Last Updated: 19 January 2011 |
| KnowYourCountry |