TRUST SERVICE PROVIDERS IN THE NETHERLANDS ANTILLES
Trust service providers are supervised by the Central Bank
On 23 December 2003, the National Ordinance on the Supervision of Trust Service Providers 2003 (Landsverordening toezicht trustwezen) entered into force, which would place most trust offices and corporate services providers under direct supervision of the Central Bank. By virtue of this Ordinance, the National Ordinance on the Supervision of Fiduciary Business (Landsverordening toezicht fiduciair bedrijf) has been withdrawn.
The Ordinance introduces a prohibition for the rendering of trust services (beheersdiensten) in or from the Netherlands Antilles. Trust services are defined as (i) to incorporate, or to have incorporated, an international company (see below), when this is done by a Netherlands Antilles resident; (ii) to act as local representative or local managing director of an international company; (iii) to make available to an international company a local representative or local managing director; and/or (iv) to wind up, or to have wound up, an international company, when this is done by a Netherlands Antilles resident.
An international company is defined as a legal entity which has its corporate or factual seat in the Netherlands Antilles and which has been granted a general foreign exchange exemption. As follows from the above, the Ordinance is particularly relevant for persons or entities that manage or render services to holding, royalty or finance companies but less so in respect of orphan special purpose vehicles (e.g. set up for securitization purposes).
Karel Frielink
Attorney (Lawyer) / Partner
