A large proportion of the financial products and services in the Caribbean Netherlands are offered by branches of banks and insurers with headquarters in Curacao and St. Maarten.
These branches of banks and insurers established in the Caribbean Netherlands are exempt from a number of supervisory regulations. However, they must comply with the regulations to combat money laundering and the financing of terrorist activities, as well as specific conduct-of-business regulations.
Other than that, the Central Bank of Curacao and St. Maarten is responsible for the supervision of these branches. For services in the Caribbean Netherlands that are contracted from enterprises whose headquarters are based on other islands, such as Curacao and St. Maarten, it applies in principle that a license is needed for these services.
Some enterprises can make use of the transitional arrangements, as described in Part 10 the Financial Markets (BES Islands) Act (Wet financiële markten BES - Wfm BES) and Section 4 of the Rfm (Financial Markets (BES Islands) Regulations (Regeling financiële markten BES)). This applies, for example, to advisers and intermediaries who were already active in the Caribbean Netherlands before 1 July 2012. However, they must then apply for a licence with the AFM before 1 October 2012. They will then receive a (temporary) right to continue offering the services.