With all that’s been going on, Saturday’s story in which Grant Thorton explained the obligation for foundations and associations to publish their annual reports and statements should not go unnoticed. They must not only post these on the Internet but file them with the Chamber of Commerce and the Financial Intelligence Unit (FIU) unusual transaction reporting centre MOT.
The relevant National Ordinance to amend the Civil Code was published on November 19 and implemented one day later. It’s part of a package to comply with recommendations of the Financial Action Task Force (FATF). The urgent need for such was again stressed by Governor Eugene Holiday in his request for National Alliance (NA) leader and current Prime Minister Silveria Jacobs to form the next government based on the January 9 snap parliamentary election.
For the non-profit organisations (NPOs) in question this implies an additional burden, although those receiving public funds must already substantiate their expenditures. St. Maarten also exempted small foundations and associations with a balance total and annual income of up to 100,000 Netherlands Antillean guilders by not qualifying them as “vulnerable.”
This is one example of the more tangible effects of the heightened worldwide fight against money-laundering and the financing of terrorism. Another related one is the corresponding bank issue due to a de-risking policy in the US to prevent suspect money flows that could prove costly in terms of huge fines.
So, when people complain about local banks coming with new, stricter requirements, understand that some of this may be based on global developments and the response of particularly American financial institutions. It’s an international reality from which there appears to be no viable escape.