INTERNATIONAL CREDIT INSTITUTIONS IN CURACAO
Banking business abroad
Credit institutions (banks) in Curacao are subject to the National Ordinance on the Supervision of Banking and Credit Institutions 1994 (the NOSB). The NOSB makes a distinction between ‘credit institutions’ and ‘international credit institutions’. The NOSB defines a credit institution as an institution that to an important extent makes its business of:
- the solicitation of repayable funds (“deposits”, whether term deposits or deposits which are repayable on demand, whether or not savings deposits, whether or not against issue of debt instruments); and
- granting credit for its own account.
An ‘international credit institution’ is defined as a credit institution which acquires funds from investments abroad and grants credits abroad, and to which a foreign exchange exemption has been granted (i.e. exemption from sections 10 up to and including 16 of the Regulation Foreign Exchange Transactions (Regeling Deviezenverkeer Curacao en Sint Maarten)) (RFET).
The explanatory memorandum to the NOSB states that one of the conditions for the granting of the Exemption is, that no acts are performed that may influence the exchange reserves of Curacao and St. Maarten. For purposes of the RFET, Curacao and St. Maarten form a monetary union and are not deemed to be foreign countries with respect to each other. The RFET defines international as being outside of Curacao and St. Maarten.
Karel Frielink
Attorney (Lawyer) / Partner
(8 September 2012)
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