Money transfer companies now under Central Bank supervision

Minister of Finance Richard Gibson


Source The Daily Herald

PHILIPSBURG, Sint Maarten — Money transfer/courier companies are to now fall under the supervision responsibilities of the Central Bank of Curaçao and St. Maarten (CBCS) with the unanimous adoption of a new piece of legislation by Parliament on Tuesday afternoon.

The law, one of two tabled by Finance Minister Richard Gibson Sr., once reviewed by the Ombudsman and published, requires all businesses acting as money courier and transfer companies to have a licence from the Central Bank. The licences will only be issued to qualifying businesses.

The law comes into place as the country moves to close loopholes in the fight against terrorism and money laundering.

Also passed unanimously by Parliament in Tuesday’s plenary session was the draft national ordinance amending the national ordinance supervision of banking and credit, the national ordinance monitoring insurance business, the national ordinance monitoring stock exchanges, the national ordinance supervision of investment institutions and administrators, the national ordinance monitoring trust, and the national ordinance insurance broking business (National Ordinance on monitoring, updating and harmonizing Central Bank of Curaçao and St. Maarten.

The second ordinance mainly dealt with technical changes to the related existing ordinances. It will brings into effect the same supervision method as used in Curaçao for institutions including commercial banks, insurances companies and brokers, stock exchange and trust companies.

Both pieces of legislation were deemed essential for the country to meet the criteria set by the Caribbean Financial Action Taskforce (CFATF). St. Maarten has been listed together with St. Vincent and the Grenadines as non-compliant with the regulations of the taskforce.

The passing of the two laws now means the country may have staved-off a visit by a high level delegation from the Financial Action Task Force (FATF) to review the situation here.

Gibson Sr. had announced the pending visit in June after he returned home from a FATF conference in Trinidad and Tobago.