Checks Remain Valid at Local Banks

Curaçao’s commercial banks have abandoned their recent efforts to eliminate payment checks from the local banking industry.

In a recent push towards embracing fullyautomated ban­king and guiding Curaçao forward into a world of e-com­merce, many of the local banks attempted to phase-out the use of all checks. However, this move was met with great resistance. The Fair Trade Authority Curaçao (FTAC) has ultimately decided to cut short the initiative, because the agreements of the banks conflict with the prevailing com­petition rules. The FTAC considered the step as a limitation of production, resulting in joint delivery refusals. Such agreements can often lead to reduced consumer choice and higher banking fees. The FTAC’s task is to ensure fair competition, cartel prohibition and prevent the abuse of dominant positions. Initially the interest group of the Curaçao Bankers Association (CBA) had attempted to pha­se-out payment checks in keeping with the general trend towards e-banking which already had taken place in many other countries. However, after lengthy consultations with FTAC, the CBA members finally decided to reverse their decision and withdraw their efforts.