ANTI-MONEY LAUNDERING AND IDENTIFICATION IN THE NETHERLANDS ANTILLES
The Netherlands Antilles maintains its reputation of pursuing high standards and integrity
The world is at war. A war against terrorism. And except for some blacklisted countries and territories, each jurisdiction has been making efforts to implement credible policies en legislation to deal with crime, both domestic and internationally. The Netherlands Antilles is ahead of such developments; its legislation and government’s proposals against crime in the Netherlands Antilles are welcomed and approved by international bodies such as the IMF. However, events like the September 11 attacks and Enron served to remind us that the quality of legislation is also determined by external events. What seems to be acceptable legislation on a certain day, is not necessarily acceptable the day following a traumatic shock.
The Netherlands Antilles National Ordinance on Penalization of Money Laundering 1993 (‘Landsverordening strafbaarstelling witwassen van gelden’), the National Ordinance Identification when rendering Financial Services 1996 (‘Landsverordening identificatie bij financiele dienstverlening’) and the National Ordinance on Reporting of Unusual Transactions 1996 (‘Landsverordening melding ongebruikelijke transacties’) are effective for many years already.
These Ordinances are quite relevant for the financial services sector. It should, however, be noted that these laws do not grant special powers or authorities to the Central Bank as regulator.
Articles 1 to 4 of the Ordinance on Money Laundering criminalize money laundering. The Identification Ordinance prescribes that any financial service provider who is acting in the course of a profession or business, is obliged to establish the identity of a customer before providing any ‘financial service’. The Ordinance of Reporting Unusual Transaction creates a Financial Intelligence Unit (‘Meldpunt Ongebruikelijke Transacties’), an administrative body acting under the responsibility of the Minister of Finance. Any financial service provider acting in the course of a business or profession is obliged to report unusual transactions to this unit.
Other legislation was put in place too. During the past years, for example, the Netherlands Antilles government and the Central Bank have made considerable progress in the implementation of new rules and regulations concerning investment institutions and trust service providers.
Karel Frielink
Attorney (Lawyer) / Partner
