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SUPERVISION PROFILE

CENTRAL BANK OF CURAÇAO AND SINT MAARTEN

1. (a) NAME OF SUPERVISORY AGENCY

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The legal basis for all acts of the Central Bank is the Central Bank Statute for

Curacao and Sint Maarten, N.G. 2010. The Central Bank will be further referred

to in this document as ‘CBCS’.

(b) CATEGORIES OF FINANCIAL INSTITUTIONS FOR WHICH IT HAS

REGULATORY OVERSIGHT/ RESPONSIBILITIES

Pursuant to article 8 of the Central Bank Statute for Curacao and Sint Maarten,

N.G. 2010:

CBCS supervises the banking and credit system of Curaçao and Sint

Maarten based on the provisions of the National Ordinance on the

Supervision of Banking and Credit Institutions 1994 (N.G. 1994, no. 4) and

shall promote a sound development of the banking and credit system in

Curaçao and Sint Maarten.

CBCS supervises company pension funds based on the provisions of the

National Ordinance on Company Pension Funds (N.G. 1985, no. 44).

CBCS supervises the insurance industry based on the provisions of the

National Ordinance on the Supervision of Insurance Companies (N.G. 1990,

no. 77).

CBCS supervises funeral service insurers based on the provisions of the

National Decree Funeral Service Insurers (N.G. 1992, no. 53).

CBCS supervises international insurers (captives and reinsurers) based on

the provisions of the National Decree Special Insurance License (N.G. 1992,

no. 50).

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CBCS supervises securities exchanges based on the provisions of the

National Ordinance on Stock Exchanges (N.G. 1998, no. 252).

CBCS supervises investment institutions and administrators based on the

National Ordinance on the Supervision of Investments Institutions and

Administrators (N.G. 2002, No. 137).

CBCS supervises trust (company) service providers based on the National

Ordinance on the Supervision of Trust Service Providers (N.G. 2003, No.

114).

CBCS supervises insurance brokers based on the National Ordinance on the

Insurance Brokerage Business (N.G. 2003, No. 113).

A draft legislation to harmonize and update prevailing supervision laws is in the last

phase of the legislative process.

In addition CBCS supervises two civil servant pension funds and three general (public)

health-care insurance funds based on separate legislations.

2. NUMBER AND NAMES OF ENTITIES SUPERVISED IN EACH CATEGORY

CBCS currently supervises under the National Ordinance on the Supervision of Banking

and Credit Institutions 1994 (N.G. 1994, no. 4).

BANKING AND CREDIT INSTITUTIONS

General Banks 6

Local general banks are credit institutions

operating in Curaçao and/or Sint Maarten as

universal banks in the legal form of a limited

liability company and which are subject to

the supervision of CBCS

Subsidiaries of

Foreign Banks

1

Subsidiaries of foreign banks are credit

institutions operating in Curaçao and/or Sint

Maarten as universal banks in the legal form

of a limited liability company and which are

majority-owned banks of foreign credit

institutions subject to supervision of a

foreign supervisory authority (i.e.

supervision by the supervisory authority of

the parent company).

Branches of

Foreign Banks

4 Branches of foreign banks are credit

institutions operating in Curaçao and/or Sint

Maarten as universal banks in the form of a

legally dependent office or branch from the

head-office which is subject to supervision of

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a foreign supervisory authority (i.e.

supervisory authorities of the head- office).

Credit Unions 9 Credit unions are credit institutions operating

in Curaçao and/or Sint Maarten in the legal

form of a cooperative union and which have

as objective to render assistance to their

participants in saving and to extend loans to

them.

Specialized

Credit

Institutions

5 Specialized credit institutions are credit

institutions operating in Curaçao and/or Sint

Maarten and which mainly extend one type

of loans (e.g. mortgage banks, development

banks and banks for consumer credit).

Savings banks 1 Savings banks are credit institutions

operating in Curaçao and/or Sint Maarten

which attract their funds mainly in the form

of savings.

Savings and

Credit Funds

3

Savings and credit funds are credit

institutions, mostly being foundations linked

to enterprises, which as primary function

provide savings opportunities to their

participants, whether or not in order to

provide them with a retirement income or an

income at the termination of the employment

relationship with the enterprise in question,

and which extend loans to their participants.

Consolidated

International

Banks

10 Consolidated international banks are

international credit institutions which are

established in Curaçao and/or Sint Maarten

and through their parent company, are

subject to adequate consolidated supervision

by a foreign supervisory authority (i.e.

supervisory authority of the parent

company).

Unconsolidated

International

Banks

23 Non-consolidated international banks are

international credit institutions established in

Curaçao and/or Sint Maarten for which

CBCS acts as the primary supervisory

authority.

CBCS currently supervises under the National Ordinance on Company Pension Funds

(N.G. 1985, no. 44)

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COMPANY PENSION FUNDS

Company

Pension

Funds

13

Being pension funds linked to a corporation,

whereby monies are being brought together

aimed at providing old age coverage for the

benefits of the participants employed at the

company.

CBCS currently supervises under the National Ordinance on the Supervision of

Insurance Companies (N.G. 1990, no. 77)

INSURANCE COMPANIES

Life Insurance

Companies

10

Being insurance companies entering into

life insurance contracts as a business for

their own account.

Funeral Services

Insurance

Companies

12 Being everybody that makes a business of

entering into an insurance contract to

provide benefits in kind in connection with

death of a person.

Non-life Insurance

Companies

21

Being insurance companies entering for

their own account into non-life insurance

contracts.

Captive Insurance

Companies

11 Being insurance companies that insure

risks of their owners which exclusively or

predominantly result from the execution of

a business or profession outside Curaçao or

Sint Maarten.

Professional

Reinsurance

Companies

4 Being insurance companies established in

Curaçao or Sint Maarten and conducting

exclusively, reinsurance business.

Insurance

Intermediaries

62 Being insurance brokers established in

Curaçao or Sint Maarten soliciting

insurance business within Curaçao or Sint

Maarten on behalf of insurance companies.

As indicated before, CBCS supervises two civil servants pension funds and three general

(public) health-care insurance funds based on separate legislations.

CBCS is entrusted with the supervision of investment institutions and administrators of

investment institutions under the National Ordinance on the Supervision of Investments

Institutions and Administrators (N.G. 2002, No. 137).

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INVESTMENT INSTITUTIONS AND ADMINISTRATORS

Investment

Institutions

20

An investment institution is

an investment company or investment fund

Investment company: is the body corporate

that raises or has obtained pecuniary means

or other property to be used for collective

investment with the objective of allowing the

participants to benefit from the revenues of

the investments

Investment fund: non-incorporated capital

comprising pecuniary means or other

property raised or obtained for collective

investment with the objective of allowing the

participants to benefit from the revenues of

the investments

Administrators 13 A legal person whose objective is to provide

administrative services

Furthermore, CBCS exerts supervision on trust (company) service providers under the National

Ordinance on the Supervision of Trust Service Providers (N.G. 2003, No. 114).

TRUST SERVICE PROVIDERS

Trust Service Providers with a

license

94

The person authorized to provide trust

services.

Trust services:

establishing an international company or

causing it to be established when such is

performed by a resident of Curaçao or Sint

Maarten;

acting as the local representative or the

managing director, residing or established

within Curaçao or Sint Maarten, of an

international company, ;

making natural persons or legal persons,

residing or established within Curaçao or

Sint Maarten, available as the local

representative or the managing director to

an international company;

winding up an international company or

causing it to be wound up, when such is

performed. by a resident of Curaçao or

Sint Maarten

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Trust Service Providers with a

dispensation

110 Dispensation may be granted to natural or

legal persons providing trust services for other

considerations than as part of the exercise of

their business.

CBCS also supervises Securities Exchanges under the National Ordinance on Stock Exchanges

(N.G. 1998, no. 252).

SECURITIES EXCHANGE

Securities Exchange 1

For the names of the licensed entities subjected to CBCS’ supervision, you are referred to the

register on the Bank’s website: www.centralbank.cw

3. PRUDENTIAL INFORMATION REQUIRED OF LICENSED INSTITUTIONS

A. BANKS

PRUDENTIAL INFORMATION/DATA REPORTING

FREQUENCY

1. Chart of Accounts (‘CoA’):

Balance Sheet;

Income Statement; and

Contingent Liabilities.

Monthly

2. Supporting Schedules (‘SS’):

SS1 – Solvency Report;

SS2 – Liquidity Report;

SS3 – Maturity Schedule;

SS4 – Interest Rate Reprising Schedule;

SS5 – Foreign Exchange Exposure

SS7 – Advances to Shareholders, Directors, Employees

and their Interest

SS 11– Loans, Leases and Acceptances by Collateral

Type

SS12 – Summary and Detailed Listing of Large Loans

and Advances by Size

SS14 – Large Depositors

SS15 – Maturity of Time Deposits

SS16 – Savings Deposits

SS17 – Interest Rates

SS18 - Receivables, Payables on Domestic

Commercial Banks

SS20 – Compensations

SS21 – Listing Codes/Names

Monthly

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3. Other Supporting Schedules (‘SS’), e.g.:

SS8 – Non-Performing Loans and Leases;

SS9 – General Provision for Losses on Loans and Leases

SS10 – Domestic Loans, Leases and Acceptances by

Economic Sector

SS13 – Breakdown Domestic Consumer Loans and

Leases

SS19 – Pledged Securities and Other Assets

Quarterly

4. Regulatory Reporting Package:

Shareholders' Information Form, reviewed by the

institution’s external auditor;

Group structure, reviewed by the institution’s external

auditor;

Statement of Compliance, reviewed by the institution’s

external auditor;

Audited Chart of Accounts and Supporting Schedules

along with the external auditor’s report;

Audited Financial Statements, from the parent company

and/or guarantor, along with the external auditor’s report;

Management Letter resulting from the audit of the

Financial Statements;

Information Form Supervised Financial Institutions,

containing general information of the institution;

Statement of Regulatory Compliance; and

Management Report.

Annually

Local and international banks are subject to the same reporting regime, with the

exception that the supporting schedules used for monetary supervisory purposes are not

applicable to international banks.

B. CREDIT UNIONS

PRUDENTIAL INFORMATION/DATA REPORTING

FREQUENCY

1. Chart of Accounts (‘CoA’):

Balance Sheet;

Income Statement;

Contingent Liabilities;

Solvency Report;

Liquidity Report;

Non-Performing Loans; and

Total Active/Inactive Members.

Quarterly (when total assets < NAf 1

million)

Monthly (when total assets > NAf 1

million)

2. Reports of the executive board and of the supervisory

board, containing the most important decisions taken.

Quarterly

3. Audited Financial Statements, along with the external Annually

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auditor’s report.

4. Management Letter resulting from the audit of the

Financial Statements.

Annually

5. Information Form, containing general information of the

credit union

Annually

C. SAVINGS AND CREDIT/THRIFT FUNDS

PRUDENTIAL INFORMATION/DATA REPORTING

FREQUENCY

1. Chart of Accounts (‘CoA’):

Balance Sheet;

Income Statement;

Contingent Liabilities;

Specifications on some balance sheet accounts;

Advances to directors;

Receivables from employer; and

Statement with the total of members.

Quarterly

2. Information Form, containing general information of the

institution

Annually

D. SPECIALIZED CREDIT INSTITUTIONS AND SAVINGS BANKS

PRUDENTIAL INFORMATION/DATA REPORTING

FREQUENCY

1. Chart of Accounts (‘CoA’):

Balance Sheet;

Income Statement;

Contingent Liabilities;

Solvency Report;

Liquidity Report; and

Other Supporting Schedules, e.g. Maturity Schedule,

General Loans and Leases Provision Schedule, etc.).

Quarterly

2. Regulatory Reporting Package, e.g. Shareholders’

Information Form, Group Structure, Statement of

Compliance, etc.)

Annually

E. INSURANCE COMPANIES (LOCAL AND INTERNATIONAL)

PRUDENTIAL INFORMATION/DATA REPORTING

FREQUENCY

1. Annual Reporting Automated Statements (‘ARAS’):

Balance Sheet;

Income Statement;

Solvency Report

Annually

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Contingent Liabilities; and

Several Supporting Schedules.

2. Audited Financial Statements Annually

3 Regulatory Reporting Package:

Shareholders' Information Form, reviewed by the

institution’s external auditor;

Group structure, reviewed by the institution’s

external auditor;

Statement of Compliance, reviewed by the

institution’s external auditor;

Management Letter resulting from the audit of the

Financial Statements;

Information Form Supervised Financial Institutions,

containing general information of the institution;

Statement Compliance

Annually

F. PENSION FUNDS

PRUDENTIAL INFORMATION/DATA REPORTING

FREQUENCY

1. Financial Report:

Balance Sheet;

Income Statement;

Several Supporting Schedules.

Annually

2. Audited Financial Statements Annually

3. Regulatory Reporting Package:

Actuarial Report

Management Letter resulting from the audit of the

Financial Statements;

Annually

G. FUNERAL SERVICES INSURANCE COMPANIES

PRUDENTIAL INFORMATION/DATA REPORTING

FREQUENCY

1. Audited Financial Statements:

Balance Sheet;

Income Statement;

Annually

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4. PRUDENTIAL INFORMATION/DATA PUBLISHED BY THE SUPERVISORY

AUTHORITY AND PUBLICATION INTERVALS

CBCS publishes aggregated balance sheet and income statements in the annual reports

and quarterly bulletins of the local and international banks which are established in

Curaçao and/or Sint Maarten. In addition, key financial soundness indicators (‘FSI’) for

the commercial banking system are also presented in the annual reports and quarterly

bulletins. These indicators are aggregates of micro prudential indicators and used to

monitor the health and soundness of the financial sector statistically.

Aggregated balance sheet and income statements for the pension funds, local insurance

companies and those servicing the international market are published only in the annual

reports. The composition of their investment portfolio is also presented in the annual

reports.

5. PRINCIPAL PIECES OF LEGISLATION GOVERNING THE OPERATION OF

BANKING/FINANCIAL LICENSEES (INCLUSIVE OF ANTI MONEY

LAUNDERING AND ANTI TERRORISM STATUES WHERE APPLICABLE)

The principal legislative pieces governing the operations of banking and other financial

licensees are:

The National Ordinance on the Supervision of Banking and Credit Institutions

1994 (N.G. 1994, no. 4)’.

The National Ordinance on Company Pension Funds (N.G. 1985, no. 44).

The National Ordinance on the Supervision of Insurance Companies (N.G. 1990,

no. 77).

The National Decree Funeral Service Insurers (N.G. 1992, no. 53).

The National Decree Special Insurance License (N.G. 1992, no. 50).

The National Ordinance on Stock Exchanges (N.G. 1998, no. 252).

The National Ordinance on the Supervision of Investment Institutions and

Administrators (N.G. 2002, no.137).

The National Ordinance on the Supervision of Trust Service Providers (N.G.

2003, No. 114).

The National Ordinance on the Insurance Brokerage Business (N.G. 2003, No.

113).

CBCS is committed to the fight against money laundering and terrorist financing.

Because of this commitment, and its membership of both the Financial Action Task Force

on Money Laundering (‘FATF’) and the Caribbean Financial Action Task Force

(‘CFATF’), the Central Bank has introduced a comprehensive framework to prevent and

combat money laundering and terrorist financing.

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The main laws or executive decrees relating to money laundering and terrorist financing

(where applicable as amended) are mentioned below and will be soon available on our

website www.centralbank.cw.

The National Ordinance on the amendment of the Code of Criminal law

(penalization of terrorism, terrorist financing and money laundering) (N.G3.

2008, no. 46);

The National Ordinance on the Reporting of Unusual Transactions (N.G. 1996,

no. 21) as lastly amended by N.G. 2009, no 65 (NORUT ) (N.G. 2010, no 41);

The National Decree containing general measures on the execution of articles

22a, paragraph 2, and 22b, paragraph 2, of the National Ordinance on the

Reporting of Unusual Transactions.(National Decree penalties and administrative

fines for reporters of unusual transactions( N.G. 2010 no. 70));

The National Ordinance on Identification of Clients when Rendering Services

(N.G. 1996, no.23) as lastly amended by N.G. 2009, no 66 (NOIS) (N.G. 2010 no.

40);

The National Decree containing general measures on the execution of articles 9,

paragraph 2, and 9a, paragraph 2, of the National Ordinance on Identification of

Clients when rendering Services. (National Decree containing general measures

penalties and administrative fines for service providers) (N.G. 2010, no. 71);

Ministerial Decree with general operation of May 21, 2010, laying down the

indicators, as mentioned in article 10 of the National Ordinance on the Reporting

of Unusual Transactions (Decree Indicators Unusual Transactions) (N.G. 2010,

no. 27);

Ministerial Decree with general operation of March 15, 2010, for the execution of

the NOIS (N.G. 2010, no.11);

Ministerial Decree with general operation of March 15, 2010 for the execution of

the NORUT (N.G. 2010, no.10)

Sanctions national decree Al-Qaida c.s., the Taliban of Afghanistan c.s. Osama

bin Laden c.s., and terrorist to be designated locally (N.G. 2010, no.93)

National Ordinance on the Obligation to report Cross-border Money

Transportation (N.G.2002, no. 74).

National Decree on the obligation to retain securities to bearer (N.G. 2010, nr.

36) (English version, unofficial translation)

In 2011 also the following decrees were implemented:

The National Decree designating services and supervision under the National

Ordinance on the Identification of Clients when Rendering Services (N.G. 2011,

no. 32); and

The National Decree designating services and supervision under the National

Ordinance on the Reporting of Unusual Transactions (N.G. 2011, no. 31).

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These decrees make Curaçao more compliant with the 49 FATF AML/CFT

Recommendations.

Furthermore, in the New Penal Code (N.G. 2011, no 48), which came into force on

November 15, 2011, the financing of terrorism is criminalized as a separate offence.

This is fully in accordance with the FATF Recommendations.

6. MAJOR CHANGES TO BANKING/FINANCIAL STATUTES IN THE LAST

FIFTEEN YEARS

Below are the major changes that occurred over the past 15 years with respect to financial

statutes.

The enactment of the National Ordinance on the Supervision of Investment

Institutions and Administrators (N.G. 2002, no. 137) on January 1, 2003,

investment institutions and administrators became subject to the supervision of

Bank van de Nederlandse Antillen (now CBCS). Moreover insurance brokers are

subject to the CBCS’ supervision since January 2004 in accordance with the

National Ordinance on the Insurance Brokerage Business.

The enactment of the National Ordinance Civil Servants Pension Fund Sint

Maarten (N.G. 2010, no. 64). The CBCS is responsible for supervision of this

fund.

The enactment of the National Ordinance Basic Health-Care Insurance (N.G.

2013, no. 3). The CBCS is responsible for overseeing the Basic Health-Care

Insurance Fund. This fund is managed by the Social Insurance Bank of Curacao

(SVB).

On October 10, 2010 the Netherlands Antilles ceased to exist as an autonomous

country within the Kingdom of the Netherlands as a result of constitutional

reforms. The islands of Curaçao and Sint Maarten acquired an autonomous status

like Aruba has within the Kingdom of the Netherlands. This resulted in a

monetary union between Curaçao and Sint Maarten with a common central bank:

Centrale Bank van Curaçao en Sint Maarten (‘CBCS’) and governed by the

Central Bank Statute for Curacao and Sint Maarten, N.G. 2010 (Centrale

Bank-statuut voor Curacao en Sint Maarten, P.B. 2010).

7. AREAS IDENTIFIED FOR FURTHER LEGISLATIVE CHANGE AND

DETAILS/STATUS OF ANY NOW IN PROCESS

The draft legislation to harmonize and to update existing supervision laws and the

draft legislation on the supervision of money transfer companies are still in the

legislative process. The possibility of imposing fines and penalties for

non-compliance by banks of our laws, regulations and requirements has been

included in the draft Harmonization and Actualization of Supervision Ordinances

of Curaçao and Sint Maarten in addition to the already existing possibility for the

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imposition of fines for the late submission of prudential returns. Following the

implementation of the mentioned draft harmonization legislation, the

supervision laws will be extended with the possibilities to exchange information

with more authorities, including foreign Financial Intelligence Units (‘FIU’s).

All money transfer companies require permission from CBCS to provide money

transfer services. However, a specific legal framework to regulate these

companies is pending implementation. A draft legislation on the supervision of

money transfer companies is in the last phase of the legislative process.

A proposal for the introduction of a Dutch Caribbean Deposit Insurance System

for the local banking sector of Curaçao, Sint Maarten and the BES-Islands:

Bonaire, Sint Eustatius and Saba, the legal successors of the Netherlands Antilles,

was presented to the respective banking associations. Extensive deliberations

within the working group resulted in a Memorandum of Understanding on the

Implementation of a Dutch Caribbean Deposit Insurance System which has been

signed by the CBCS as supervisory authority for Curaçao and Sint Maarten and

the Dutch Central Bank as the supervisory authority for the BES-Islands and the

respective bankers associations of the locally active banks in Curaçao, Sint

Maarten and the BES-islands. It has been established that certain aspects of the

proposed System need to be more thoroughly investigated. Moreover, the FDIC

of the U.S.A. has been approached for advice on technical matters. The maximum

sum to be received by a depositor is NAf. 10.000,- (approximately USD 5.587,- ).

All deposits will be covered with a few exceptions like deposits from

governments, other banks, directors from the supervised institution etc. The

funding of the scheme will be a combination of pre funding and post funding.

A proposal for the introduction of a Deposit Insurance System for the credit

unions of Curaçao and Sint Maarten was presented to the association of credit

unions with request for comment. The association informed us that it applauds the

initiative but requested the Bank to allow it more time to comment on the contents

of the draft Deposit Insurance System since it wishes to consult the Caribbean

Confederation of Credit Unions (‘CCCU’) for advice.

The CFATF conducted on-site assessments on the AML/CFT framework of

Curaçao and Sint Maarten respectively during the period August 22 to September

2, 2011 and March 19 to March 30, 2012. The MEVAL Reports of both Curaçao

and Sint Maarten have been published on the CFATF public website

(https://cfatf-gafic.org). CFATF action plan is being implemented. Draft

legislation to amend the relevant AML/CFT legislation, the NORUT and the

NOIS, is in preparation.

In 2014 a committee was established within the CBCS to work on a new pension

supervision ordinance. It is the intention to finalize a draft in the third quarter of

2014. This new pension supervision ordinance will provide the Bank with a better

instrument to supervise not only company pension funds but also other providers

of collective pension schemes.

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8. FORMAL DIRECTIVES, POLICIES, GUIDELINES/GUIDANCE NOTES

ISSUED BY SUPERVISORY AUTHORITY TO LICENSEES

Pursuant to the National Ordinance on the Supervision of Banking and Credit Institution

(N.G. 1994, no. 4), CBCS has issued several policy memoranda, guidelines, supervisory

regulations etc.

Admission Requirements for Subsidiaries of Foreign General Banks

Admission Requirements for Branches of Foreign General Banks

Admission Requirements for Specialized Credit Institutions and Savings Banks

Admission Requirements for Consolidated International Banks

Admission Requirements for Non-Consolidated International Banks

Policy Memorandum on the Change of External Auditors of a Credit Institution

Policy Memorandum on the Periodic Filing of a Management Report

Policy Memorandum on the Sale or Transfer of Shares in a Supervised Credit

Institution

Supervisory Regulations I

Supervisory Regulations II

Supervisory Regulations III

Supervisory Regulations V

Provisions on Disclosure of Pricing Information on Consumer Credit (APR)

Provisions on the Disclosure of Consolidated Financial Highlights of Domestic

Banking Institutions

Provisions and Guidelines for Safe and Sound Electronic Banking

Guidance notes for the supervisory board of supervised financial institutions

(Summary of best practice guidelines)

Guidelines for Statement of Regulatory Compliance

In 2013, CBCS drafted c.q. updated three sets of guidelines: “Provisions on Preventing

Overextension of Credit”, “Provisions on the Disclosure of Pricing Information on

Consumer Credit” and “Provisions on the Disclosure of Interest Rates on Deposit

Accounts (Annual Percentage Yield ‘APY’ provisions)”. These provisions were

submitted to the financial sector for comments and based on the feedback from the sector,

CBCS will adjust mentioned draft provisions.

Pursuant to the National Ordinance on the Supervision of Insurance Companies (N.G.

1990, no. 77), CBCS has issued the following provisions:

Provisions for the Disclosure of Consolidated Financial Highlights of Insurance

Companies

Pursuant to the National Ordinance on the Supervision of Investments Institutions and

Administrators (N.G. 2002, No. 137), the CBCS has issued the following directives,

guidelines, and provisions:

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Directives on the Supervision of Investment Institutions and Administrators

(“DSIIA”) and Explanatory Memorandum to the DSIIA

Policy Guidelines on Exemption Regulation for Administrators

Policy Guidelines for Foreign Administrators

Policy Guidelines for Foreign Investment Institutions

Policy Guidelines on Exemption Regulation for Investment Institutions

Pursuant to the National Ordinance on the Supervision of Trust Service Providers (N.G.

2003, No. 114), the CBCS has issued the following directives, guidelines, and provisions:

Directives for the implementation of articles 3 paragraph 2, 8 paragraph 2 and

11 paragraph 1 of the NOST

Policy Guidelines on Dispensation for Trust Service Providers

Additionally, CBCS has the following directives, guidelines, and provisions for the

purpose of preventing and combating money laundering and terrorist financing.

Provisions and Guidelines on the Detection and Deterrence of Money Laundering

and Terrorist Financing for Credit Institutions

Provisions and Guidelines on the Detection and Deterrence of Money Laundering

and Terrorist Financing for Administrators of Investment Institutions and

Self-Administered Investment Institutions

Provisions and Guidelines on the Detection and Deterrence of Money Laundering

and Terrorist Financing for Insurance Companies and Intermediaries (Insurance

Brokers)

Provisions and Guidelines on the Detection and Deterrence of Money Laundering

and Terrorist Financing for Money Transfer Companies

Provisions and Guidelines on the Detection and Deterrence of Money Laundering

and Terrorist Financing for Company (Trust) Service providers

Policy Rule on the Violation of the NORUT and NOIS Legislations and the

Provisions and Guidelines on AML & CFT

In addition to the above, also the following documents were issued for the purpose of

Integrity Supervision:

Policy Rule on Integrity Testing CBCS - Jan 2011

CBCS Regulation concerning the number of permitted (co-)policy-making

positions per person - Sep 2012

Policy Rule for Sound business Operations in the Event of Incidents and

Integrity-Sensitive Positions CBCS – July 1, 2013

Policy Rule on Integrity Testing of local PEP’s CBCS – Jan 2011 (Dutch /

English)

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Finally, also the following documents were issued regarding Information Management:

Management of Computer Risks for Senior Management

Provisions and Guidelines Business Continuity Management

Policy Memorandum IMRA

Provisions and Guidelines for Information Security Management

Provisions and Guidelines for Safe and Sound Electronic Banking

Provisions and Guidelines for IT Service Management

9. STATUS OF JURISDICTION VIS A VIS BASEL CORE PRINCIPLES OF

BANKING SUPERVISION

CBCS objective is to embrace all recommendations of the Basel Committee on the

Banking Supervision and to apply them to the fullest possible extent in the conduct of its

prudential supervisory responsibilities.

To enhance compliance with “Core Principles”, CBCS is in the process of reinforcing

existing risk based supervision by developing a comprehensive risk based supervision

framework. This process is being guided by a multi/cross departmental working group.

As part of this process a supervision tool is being developed. This is an ongoing process.

CBCS also concluded a new Chart of Accounts reporting system which is based on

International Financial Reporting Standards (IFRS) and the Basel II framework. Plans are

for the New Chart of Accounts to replace the existing reporting system in 2015.

10. JURISDICTION STATUS VIS A VIS FINANCIAL SECTOR ASSESSMENT

PROGRAMME (FSAP)

The Netherlands Antilles (of which Curaçao and Sint Maarten were part of up to October

10, 2010) has been assessed by the International Monetary Fund (‘IMF’) under its OFC

programme. The final report was published in 2004 and is available on the websites of

both the IMF and CBCS.

In May 2014, the countries of Curaçao and Sint Maarten were assessed by the IMF as

part of its regular consultations under Article IV of the IMF’s Articles of Agreement. The

report on the consultation is available on the websites of both the IMF and CBCS.

July, 2014