ESTABLISHING A BANK ON CURACAO
Not every application is honored
In order to establish a bank on Curacao (the Netherlands Antilles) a license granted by the Central Bank (‘Bank van de Nederlandse Antillen’) is required. The general rule on Curacao is that new banks are only admitted as long as the banking market provides sufficient opportunities for a sound development in the banking sector.
It is required to send an application letter to the Central Bank, which a.o. should include information on the start capital (at least 5 million Netherlands Antilles Guilders in case the bank will become a subsidiary of a foreign bank). In case the bank will be a branch of a foreign bank, the branch must provide the Central Bank with a guarantee of its head office stating that the head office shall guarantee all liabilities of the Branch.
Also, information should be provided regarding the identity of the members of the Board of Managing Directors and the Board of Supervisory Directors. When establishing a subsidiary, there must be at least two members in the Board of Managing Directors and three in the Board of Supervisory Directors. A branch must have at least two managers. The head office of the Branch must have a Board of Supervisory Directors with at least three members. The Central Bank needs also be informed about these people’s antecedents by a Declaration of good conduct (‘verklaring van goed gedrag’). All members must be natural persons and be in function and be a resident of the Netherlands Antilles. Please note this is only a summary of certain information the Central Bank requires.
Karel Frielink
Curacao-based Attorney (lawyer) / Partner
(27 March 2007)
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