A NEW Normal: Curaçao is Ruled ‘Fully Compliant’

Curaçao could not have hoped for a better start at the 10th annual Caribbean Regional Compliance Association, (CRCA), Conference, entitled ‘Chaos – the New Normal’. Minister of Economic Development, Mr. Eugene Rhuggenaath shared the breaking news that Curaçao is now fully compliant with international fiduciary standards. The CRCA conference covered topics related to financial crime and money laundering, and was a huge success, not only in terms of the large attendance and value for its participants, but also because of the momentous strides that Curaçao has made towards full compliance.

TEXT FARAH DIBAH AYOUBI

Curaçao Stamped with Seal of Compliance
Minister of Economic Development, Mr. Eugene Rhuggenaath, announced the news on behalf of the Minister of Finance, Dr. Jose Jardim, who was unable to make it in time for the conference as he was still in Turks and Caicos, attending the CFATF (Caribbean Financial Action Task Force) plenary at which this Curaçao Compliance ruling was passed. Rhuggenaath graciously announced, “I am honored to share the good news, that it was decided in this year’s plenary that Curaçao is no longer subject to periodic reviews by the CFATF, as all shortcomings in our Anti Money Laundering and Counter Terrorist Financing legislation and policy framework have been successfully addressed and as of now Curaçao is fully compliant with international standards. Congratulations Minister Jardim and Congratulations Curaçao!”

Much like obtaining a seal of approval, Curaçao had to undergo a series of four evaluations after having taken measures to: strengthen its legal and regulatory anti-money laundering and financing of terrorism framework; adopt a new Penal Code and implement various National Ordinances and Ministerial Decrees. Processes, procedures, provisions and guidelines have also been incorporated in the regulatory framework. During the CFATF Plenary meeting that was taking place at the same time as the CRCA conference, Curaçao was successfully approved by the task force and is now officially rated as fully compliant. This strengthens our competitive position on the financial markets, sends out the right signal about our level of commitment and ethics, and opens more doors to foreign investment. Ulrich de la Paz, Conference Chairman and Chairman of the local compliance officers association, ACCUR, said, “Small countries often have to make a bigger and bolder effort to meet compliance standards that are set by large countries that define the field. To meet these standards sometimes we have to stretch far beyond our limitations. Curaçao has been reviewed and removed from the list of non-compliant countries. To say we are proud is an understatement.” Curaçao has positioned itself firmly as a reputable player in the New Normal of compliance.

Compliance’s New Normal
The worldwide shift towards higher standards of compliance has been changing the global scene of financial business. The repercussions of FATCA* regulations, for example, are impacting clients, banks and other financial institutions worldwide. Financial institutions are forced to approach and handle client accounts and the responsibilities that come with these dealings in a different way. Rhuggenaath drew attention to the fact that compliance is not only relevant for the financial services sector, it is also an economic issue, saying that, “Curaçao’s economy, as confirmed by the most recent IMF Article IV Consultation Review, urgently needs more foreign direct investments, an increase in business and more international trading partners. Other countries, business partners, investors, overseas clients, they all want to do business with and in countries that are compliant. In fact, international organizations like the World Bank Group, the International Monetary Fund (IMF) and the Organization for Economic Cooperation Development, (OECD), are increasingly critical of countries that are non-compliant. Consequently, the ‘New Normal’ is that countries that are known for money-laundering… countries that do not have robust tax laws… countries that are known for trade in counterfeit goods… countries that do not have proper law enforcement, will no longer be considered for business and run the risk of going ‘out of business’.”

A Larger CRCA Conference Turnout
The CRCA Conference brought together compliance practitioners and an impressive list of experts in their field who covered a wide array of topics to broaden the knowledge base and bring valuable insights. It created a platform on which to share best practices and concerns that Caribbean compliance officers face. The good news for Curaçao may have made for an eventful start of the conference, however the tone for a successful conference was set well in advance. The intention to hold the conference in Curaçao was set in 2012, when De La Paz joined the CRCA committee. Achieving this goal in 2016, the same year that ACCUR celebrates its 10th anniversary is a crowning moment. De la Paz focused on attracting more participants to the conference, which is usually attended by an average of 150 delegates. This year’s conference was sold out and there was a waiting list in case any of the approximately 260 delegates would relinquish their seat in the beautiful ballroom of the Santa Barbara Beach and Golf Resort. He notes, “I focused on raising attendance. I know we have great potential here, so getting people here to learn more about us was important. Most conferences are held in the north and it was time to showcase the Southern Caribbean and our hidden treasures. I knew we could do it, and I’m proud that we did it.” The extra marketing efforts and the lure of the spectacular venue aside, the bigger turnout is also attributable to the recent developments in the compliance sector that make it imperative to stay abreast in the compliance working field. There is a shift in the way compliance is approached worldwide, and many are looking to find their way in this rapidly evolving arena. Hence the conference title: Chaos is the New Normal. Ulrich de la Paz, Chairman of ACCUR adds, “What makes this conference so unique is that the focus of the topics is based on the headaches and challenges we are facing in the Caribbean. Small countries have to make a bigger, bolder effort to meet compliance standards of large countries that define the field.”

*FATCA: The Foreign Account Tax Compliance Act, (FATCA), is a 2010 United States federal law that serves to enforce the requirement for United States persons, including those living outside the U.S., to file yearly reports on their non- U.S. financial accounts to the Financial Crimes Enforcement Network, (FINCEN). The law requires all non-U.S. (foreign) financial institutions (FFIs) to search their records for U.S. person-status and to report the assets and identities of such persons to the U.S. Department of the Treasury. Source: Wikipedia