ATTRACTING FUNDS IN THE DUTCH CARIBBEAN
Attracting funds from the public at large is prohibited
Article 45 of the Netherlands Antilles Ordinance on the Supervision of Banks and Credit Institutions 1994 (‘Landsverordening Toezicht Bank- en Kredietwezen 1994’) prohibits anyone from directly or indirectly turning to the public in the Netherlands Antilles with a view to attracting funds with the exception of credit institutions possessing a permit to do so.
This prohibition also applies to the offering of certain types of securities, e.g. bonds, for which an exemption must be obtained from the Bank of Netherlands Antilles if the moneys will be attracted by any other party than a credit institution with a permit.
This prohibition does, in my view, not apply to the offering of shares by a shareholder, as this apparently qualifies as a share sale and purchase transaction rather than the attracting of funds.
The prohibition does not apply to securities brokers who wish to send offering documents to Netherlands Antilles clients who specifically request them. Any person in the Netherlands Antilles is free to request offering documents from any party in the world and any such party is free to honor such requests.
A securities broker needs to apply for dispensation, however, if he wishes to approach the public at large in the Netherlands Antilles either to attract funds regularly or to attract a significant amount of funds.
Karel Frielink
Attorney (Lawyer) / Partner
