There are limited risks when banking in Curaçao. In fact, unlike many other Caribbean islands, Curaçao is not listed as a jurisdiction for non-cooperation, AML risks, or requiring increased monitoring by any of the major regulatory bodies.
That said, Curaçao was identified as a money laundering hub by the United States Depart of State as recently as 2017. Though, that report also shared that the country was making major progress improving it’s banking sector in terms of transparency even then.
In this article, we are going to share risks you should consider before applying to open accounts here. In doing so, we’ll help you navigate these risks and ensure you find the best bank for your situation. Plus, we’ll also answer common questions we receive from our members looking to bank in Curaçao.
This article is part of our free series on how to open a bank account in Curaçao, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- What Are the Risks of Banking in Curaçao?
- Is Curaçao Safe for Banking?
- Frequently Asked Questions
- Ready to Open an Offshore Bank Account?
What Are the Risks of Banking in Curaçao?
The main risks of banking in Curaçao include bank specific risks and country specific risks. In other words, choosing the wrong bank could impact your ability to access funds, send transfers, or access international currencies.
Likewise, while Curaçao is not currently blacklisted, it is a close neighbor to the sanctioned country of Venezuela. In fact, Curaçao sits 40 miles off the Venezuelan coast.
While Curaçao’s proximity to Venezuela has not caused any problems recently, it could result in issues in the future. For example, if the Curaçao banks become exposed to the Venezuelan economy, trade, or gold production.
Is Curaçao Safe for Banking?
Yes, Curaçao is safe for banking if you choose the right bank, deal with competent bankers, and maintain reasonable deposits that match your risk tolerance.
That said, like banking in any country, if you choose to open a foreign non-resident bank account to access personal banking in Curaçao with a bank that has poor management, irresponsible lending, and investing practices, and does not maintain adequate capital and liquidity ratios, it would not be considered “safe”.
As mentioned, there are two main risk factors that you should consider before opening bank accounts in Curaçao. These risks are bank-specific risks and country risks. We discuss both of these risks in detail below.
Bank-Specific Risks in Curaçao
Not all Curaçao banks are created equal. This is a given. Certain banks are better managed, better capitalized, and worth considering over others. In Curaçao, this is especially true when you are looking at banks that cater to foreign non-residents and foreign entities with high-risk industries.
That said, unlike many jurisdictions, Curaçao banks do not have deposit insurance. In fact, compared to banking in the EU and the US where banks do have deposit insurance of EUR 100,000 and USD 250,000, this may be a concern.
While we don’t advocate relying on deposit insurance to protect your nest egg, we do advocate taking a close look at a bank’s solvency and liquidity ratios, how they operate, and determining whether or not you trust the bank to protect your money.
Another bank-specific risk to take into consideration before applying to access premium financial services through Curaçao private banking or personal banking is the lack of correspondent bank relationships. In fact, between 2017 and 2018, Curaçao’s banking system lost a total of seven correspondents. Of course, this may not be as bad as other countries, like Belize, but it is worth considering.
Country Risk of Curaçao
While Curaçao holds some of the lowest tax regimes in the Caribbean, it is not considered a tax haven. This is a common misconception when it comes to opening bank accounts overseas and unlocking Curaçao offshore banking.
But, even though Curaçao is not a tax haven doesn’t mean there aren’t country-specific risks to consider. In addition to having a next-door neighbor that is sanctioned, Curaçao is one of the few countries that attracts businesses engaged in online gambling and casinos.
Business banking in Curaçao could be positive for business owners engaged in online gambling. But, it can also be a risk for business owners involved in other industries. For example, if a country becomes a target for international regulators, it could result in lost correspondent banking relationships.
Additional Curaçao Nuances to Consider
Another consideration before opening in Curaçao is that many banks will only open accounts in Netherlands Antillean Guilder (or ANG). In fact, many banks in Curaçao have limitations on the access to (and ability to offer) foreign currencies. Not to mention, have strict onboarding regulations and Curaçao banking requirements non-residents need to meet.
That said, most of the registered financial establishments and lists of banks operating in Curaçao that cater to foreign non-residents and foreign companies will offer foreign currency accounts. However, it’s important to note that these banks typically charge higher account fees and Curaçao banking costs for both inbound and outbound transfers.
With that said, there are unique financial incentives and benefits to banking in Curaçao, which you can learn more about by clicking here and accessing our free guide. Of course, the benefits you can tap into will depend on your client profile and the bank you choose to open an account with.
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Frequently Asked Questions
Below are a few of the most common risk-related questions we receive from looking at banking in Curaçao. If you have further questions you would like answered, don’t hesitate to get in touch.
Which Is the Best Bank in Curaçao?
The top elite institution and the best bank in Curaçao will depend on the person (or company) applying for an account. This includes the client profile, financial objectives, and Curaçao banking services that are required. These factors influence which banks are realistically the best for each person. However, it’s important to note that there are a number of banks here that cater to foreign non-residents. That said, you will want to confirm the available currencies and whether or not the bank meets your specific needs before applying to open an account.
What Is the Largest Bank in Curaçao?
The largest bank in Curaçao is Maduro & Curiel’s Bank, in terms of total assets. That said, 44 financial institutions operate here, and the biggest international financial firms and the largest banks in Curaçao may not be the best for your banking needs. With this in mind, if you are a foreign non-resident, you may want to consider one of the other local banks, foreign banks, or international banks. This is especially true if you are looking to frequently transfer payments or send money to Curaçao.
What Is the Name of the Central Bank in Curaçao?
The name of the Central Bank in Curaçao is the Central Bank of Curaçao and Sint Maarten (CBCS). The Central Bank of Curaçao and Sint Maarten oversees and supervises all active financial institutions in both Curaçao and Sint Maarten. It is also the only institution that can issue coins and paper money in these countries.
Ready to Open an Offshore Bank Account?
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