By unanimously approving a National Ordinance amending the Penal Code (see Saturday paper), Parliament showed it understands the importance of meeting international obligations related to combatting money-laundering and the financing of terrorism. Prior concerns of members were addressed by Government in a “note of change,” which meant United St. Maarten Party (US Party) faction leader Rolando Brison could withdraw an amendment he had tabled earlier.
However, two more draft laws to revise Book 2 of the Civil Code and establish a new Penal Procedural Code are still pending to be fully compliant with the Financial Action Task Force (FATF) recommendations. This is necessary to avoid receiving a “public statement” as a jurisdiction with weak measures against money-laundering and terrorism-funding.
The latter could have severe consequences in terms of doing business in and with St. Maarten, as banks abroad would enhance scrutiny and/or limit relationships and transactions with the country. Caretaker Prime Minister Wycliffe Smith warned that this could lead to far-reaching financial-economic consequences.
In May the legislature had already adopted related changes to the Financial Intelligence Unit (FIU) legislation partly for the same reason. The hope is now that the remaining steps can be taken sooner rather than later.
The November 1 deadline set by FATF may no longer be feasible, but if efforts are clearly being made in earnest to do what is required, some respite should be possible. It’s all about showing determination and resolve.
