A bank has less freedom than an ordinary legal entity

What would be the requirements, from a regulatory point of view, if a Curaçao or St. Maarten bank wished to sell its entire business or a substantial part thereof? Would it require approval from the Central Bank of Curaçao and St. Maarten (‘Centrale Bank van Curaçao en St. Maarten’)?

Generally, if the activity at a bank is characterized as some form of financial reorganization, for example, the prior approval of the Central Bank is required. The bank is also obliged to immediately inform the Central Bank in writing of any resolution for complete or partial liquidation or for the dissolution or sale, directly or indirectly, of its enterprise in Curaçao and/ or St. Maarten, and to implement such a resolution under the supervision of, and in accordance with the instructions, of the Central Bank. This provision would apply, for example, if a bank were to sell its entire client base.

If a bank no longer carries on its business its license will be revoked and the bank will subsequently be liquidated in accordance with the guidelines and instructions of the Central Bank.

Karel Frielink
Attorney (Lawyer) / Partner

(27 January 2014)


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