Compliance-Vorschriften in Curacao

What is compliance?

The Financial Action Task Force (FATF) is an intergovernmental body established in 1989 and headquartered in Paris, France.

The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures to combat money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF is therefore a "policy-making body" working to generate the necessary legislative and regulatory reforms in these areas.

In recent years, government and financial regulators have imposed more and more regulations on financial institutions. In this way, they hope to promote the integrity of the financial system and prevent new financial scandals. For example, there is legislation on preventing fraud, insider information, money laundering and terrorist financing.



What about Curaçao

Financial Intelligence Unit Curaçao

The Financial Intelligence Unit Curaçao (also known as FIU) supervises service providers who provide certain services. This means that the FIU checks whether the service provider complies with legal obligations. If the service provider fails to do so, it risks a fine or even criminal prosecution. The current legislation has been in place since 2017 and is regularly tightened.

Countries that are members of (a member of) the FATF make their own laws. In Curaçao, these are the "Landsverordening Meldpunt Ongebruikelijke Transacties" (LvMOT) and "Landsverordening Identificatie bij Dienstverlening" (LID).


May a service provider make a copy of your ID?

Identify and verify

Yes, the service provider may do this; in fact, he is required by law to do so. Under the LID, if he provides certain services, he must, among other things, conduct a client screening process. An important part of this is that the service provider must know who he is dealing with. He is obliged to establish your identity and verify it with the help of a valid and original proof of identity. A copy is not sufficient; the service provider may not accept an expired ID either. If you live or reside abroad, the service provider will ask you for additional documents, such as a certified copy of your ID and a certified extract from the Civil Registry of your place of residence or stay.


Legal entity; identifying and verifying UBOs

Do you act for a legal entity such as a public limited company (N.V.), private limited company (B.V.), association or foundation? If so, the service provider will have to establish and verify not only your identity, but also the identity of the legal entity on the basis of a recent certified extract of the legal entity from the Chamber of Commerce. You will also have to prove that you are authorized to act on behalf of the legal entity. Also, the service provider will ask you to provide insight into the structure of the legal entity: who are the shareholders, who is in control (ultimate interested parties (UBOs))? The service provider will ask you for their identity, and the identity of these UBOs will have to be established by means of a valid identity document. So depending on the situation, the service provider will be able to ask you for various documents.

Client Screening

Client due diligence will be more thorough in certain high-risk situations. For example, if you are a PEP (politically exposed person) or if you have not been or will not be physically present with the service provider, the service provider will conduct an enhanced client screening.

You are obliged to cooperate in the client screening process.

There may be an (extended) business relationship with your service provider (think, for example, the work of an attorney or real estate agent) or an incidental transaction (think, for example, the purchase of a motor vehicle). If there is an (intended) business relationship, the service provider may not begin working for you until after they have conducted the investigation. If there is an (intended) incidental transaction, the service provider may not execute the transaction until after he has conducted the investigation.

Origin of money/resources

In some cases, an investigation into the origin of the funds used in the transaction may also be part of the client due diligence. In the case of a business relationship, this may come up during the duration of the service. The service provider should be able to determine where the funds used come from and whether there is a relationship between the source and the client. He will be able to ask the necessary questions about this and may also request documentary evidence from you.

In the case of a business relationship, the service provider is obliged to continue to monitor it even during the business relationship. He will therefore also ask you for information about the transaction or the parties involved during the duration of the service if there is reason to do so.