Gambling
Dutch parliament urges Curaçao to beef up gambling regulations
MPs in the Dutch Parliament have proposed a motion urging Curaçao to beef up its gambling and anti-money laundering regulations.
Members of Parliament Van Nispen (SP), Michon-Derksen (VVD), and Van der Werf (D66) put forward the motion during a two-minutes debate on security the Netherlands’ Caribbean possessions.
It comes as Curaçao puts the finishing touches on its new LOK gambling law, which aims to tighten oversight in the offshore gaming hub.
The motion noted that money laundering is a major problem on the island, with connections between organised crime and civil society posing risks for the integrity of public administration.
While it noted the ongoing work of reform and that gambling remains the island’s responsibility, it argued serious crime could affect the government’s probity.
As such, it called on the Dutch government to enter into consultation with Curaçao to ensure gambling supervision is tightened with the aim of combatting money laundering.
The risk of Curaçao being placed on the Financial Action Task Force’s (FATF) list on jurisdictions under increased monitoring, the so-called grey list, was a major factor in reform.
Historically, Curaçao gaming businesses were licensed under a two-tiered master and sub-licence system.
This framework saw lower-level licences subject to far less stringent oversight in practice than high-level licences, which critics warned posed responsible gambling and money laundering risks.
Under new legislation, master licences will be abolished with the goal of a new gambling regulator supervising all businesses according to the same set of rules.
Many of the world’s offshore gambling businesses have been licensed in Curaçao.
However, some observers have noted the updated system may see many companies moving to new jurisdictions to escape the new oversight.
Last month, the most prominent of the old master licensees, Cyberluck, was declared bankrupt due to unpaid debts.