Island Financial

Island Financial (1546)

UNITED STATES - The United States of America has named 21 Caribbean countries among a wider global list of Major Money Laundering Countries of 2016.

This list includes Curaçao, Aruba and Sint Maarten. The US State Department this week released the countries in its 2017 International Narcotics Control Strategy Report on Money Laundering and Financial Crimes.

The US says money laundering in Sint Maarten, centers around criminal profits that occur through business investments and international tax shelters.

The State Department slammed the island’s government as “weak” adding that it continues to be vulnerable to integrity-related crimes.

PHILIPSBURG, St. Maarten - On Thursday, March 23, Prime Minister William Marlin presented as part of the launch of the governing program 2016 – 2020 “Stability for Prosperity!”, a hard copy of the program to Parliament. The presentation was made to the Chairlady of Parliament Sarah Wescot-Williams and MP Frans Richardson, second Vice Chairman.

The governing program outlines the vision and strategy for the governing period. The program was formulated by a workgroup established by the parties that rejoined forces after the 2016 elections – the National Alliance, the United St. Maarten Party and the Democratic Party - under the umbrella of the United Democratic Alliance.

According to the Prime Minister, “the continued union of the United Democratic Alliance is a solid base to ensure the achievements towards the stability and growth of Sint Maarten. Given the parties' desire to continue developing a sustainable, equitable and flourishing Sint Maarten for all the governing program 2016-2020 has been named "Stability for Prosperity!””

PHILIPSBURG, St. Maarten – On Monday 13th March, 2017 the Minister of Finance from Sint Maarten, the Honorable Richard Gibson Sr. met with the Minister of Finance from Curacao, the Honorable Kenneth Gijsbertha to discuss vital financial matters that affect both Sint Maarten and Curacao.

Some topics addressed during this meeting were: the management of the Central Bank of Curacao and Sint Maarten (CBCS), the de-risking trends within our financial institutions, the division of assets of the former Netherlands Antilles, Sint Maarten and Curacao’s possible participation with the pilot project organized by the United States and the upcoming IMF Meeting in Washington, to take place in April of this year.

The meeting further centered around the plan of approach to finalize and address other pending financial matters and to ascertain a continued working relationship between both Governments.

PHILIPSBURG, St. Maarten - On March 1st, Minister of Finance Richard Gibson met with Mr. Julian Lopez Ramirez, Managing Partner and Tax Partner of Deloitte in the Dutch Caribbean, to discuss the most recent developments in national and international fiscal affairs.

Mr. Lopez Ramirez took this opportunity to also present the published inaugural lecture of Professor Kavelaars titled “Internationale fiscaliteit in transitie” which was presented on January 19th in Curacao when Professor Kavelaars accepted his appointment as extraordinary professor at the University of Curacao.

PHILIPSBURG, St. Maarten – The House of Parliament will sit in a plenary public session on March 9, 2017. The Minister of Finance will be present.

The plenary public meeting has been set for Thursday at 2.00 pm in the General Assembly Chamber of the House at Wilhelminastraat #1 in Philipsburg.

The agenda points are:

1. Incoming documents

2. Draft National Ordinance establishing the accounts of Country St. Maarten for the financial year 2012 (Ordinance establishing accounts 2012) (ZJ 2016-2017-096) (IS / 014 / 2016-2017 dated September 21 2016)

3. Approval Decision Lists Public meetings Parliamentary Year 2016-2017 no. 1-6 and POV no. 1

Members of the public are invited to the House of Parliament to attend parliamentary deliberations. 

PHILIPSBURG, St. Maarten On March 6, 2017, the General Audit Chamber submitted its report to Parliament and the Minister of Finance, regarding the audit of the 2015 Financial Statements of the General Pension Fund (Algemeen Pensioenfonds Sint Maarten - APS).

The financial position of the APS has become more worrisome, according the Audit Chamber. The drop in the coverage ratio from 97.6% in 2014 to 93.2% in 2015, is a key indicator. The coverage ratio is an important measure used by a pension fund to determine if the fund’s assets will be able to cover future pension obligations. The minimum standard required by the Central Bank of Curaçao and Sint Maarten is 100%. Furthermore, APS did not meet the internal standard of its investment policy, which requires a long-term return of 5.5% on its entire investment portfolio. In 2015, the APS recorded a 0.39% return on its entire investment portfolio. The average return since 2011 is 4.29%.

Factors that contribute to the tenuous financial position of the APS include APS’s invoicing of lower than legally required premiums (22% instead of 25%), and the long outstanding claims against both the government of Sint Maarten and the General Pension Fund of Curaçao. The payment of ANG 19 million arising from the sale of the government building, and the payment of ANG 60 million based on the division of assets and liabilities between Sint Maarten and the Netherlands Antilles, was not fulfilled. As of the publication of their report, the Audit Chamber had not received confirmation of the resolution of these claims.

The Audit Chamber believes that the agreement reached between government, labor representatives of civil servants and the APS to reform the pension system may lead to sustainability of the Fund as compared to the existing arrangement. “However, compared to the current pension system, the new system represents austerity”, according to the Audit Chamber. The proposed changes of the pension system include an increase of the retirement age to 65 years, introduction of a pension based on the average-salary over a career instead of a final-salary arrangement, and the lowering of the minimum participation age to 18 years. In its report, the Audit Chamber expresses the hope that the APS will inform participants in a timely fashion about the reasons and consequences of the proposed changes.

There are several encouraging improvements at the Fund. APS presented the 2015 Financial Statements and the 2015 Budget within the legally required timeframe. In addition, APS is finalizing the amendment of its investment policy to align the policy with their new strategy. The APS reported that as of January 1, 2016, they have been invoicing based on the legally required premium of 25%.

WILLEMSTAD/PHILIPSBURG According to the Quarterly Bulletin of the Centrale Bank van Curaçao en Sint Maarten, the economic performance in the monetary union was disappointing during the third quarter of 2016. Growth remained flat in Curaçao (0.0%) while Sint Maarten recorded a real GDP contraction of -0.3%.

Growth remained flat in Curaçao caused by a decline in public sector activities, offsetting subdued private sector growth. The positive outcome in, particularly, the construction and utilities sectors was offset in part by fewer activities in the restaurants & hotels, and the transport, storage & communication sectors. The upbeat performance of the construction sector was supported by the growth in public and private sector investments. Meanwhile, the gain in the utilities sector was driven by increased production of water and electricity. Real output also expanded in the manufacturing sector, albeit at a much slower pace compared to the third quarter of 2015, as a result of an increase in ship repair activities moderated by a drop in refining activities.

By contrast, real value added shrank in the restaurants & hotels sector reflecting a decline in the number of visitor nights, stay-over arrivals, and cruise tourists. The contraction in the transport, storage & communication sector was related to a drop in air transportation and airport-related activities.

SIMPSON BAY,  St. Maarten - Training Professionals International Firm, TPI is excited to announce that they have partnered with the Anguilla Chamber of Commerce and Industry to host TPI’s ACCREDITED Administrative and Executive Assistant Training for professionals in the work place. This course will help to prepare your Assistants for performance excellence.

The training will take place on Wednesday, March 1st, 2016 at La Vue Boutique Inn’s Conference from 8:30am to 4:30pm.  The cost for the training is US$ 250.00 per person.  All participants who complete this course will receive an “accredited” globally recognized Certificate of Completion. All interested persons/companies, are asked to send an email to This email address is being protected from spambots. You need JavaScript enabled to view it.. All of the other services provided by TPI are available to Anguilla and can be viewed at TPI will be offering a consortium of other accredited training opportunities in Anguilla and other Caribbean islands this year. This particular training will be offered in St. Maarten on Tuesday April 25th to register contact This email address is being protected from spambots. You need JavaScript enabled to view it..">This email address is being protected from spambots. You need JavaScript enabled to view it..

A spokesperson from the Anguilla Chamber of Commerce stated in a recent press release: “The Anguilla Chamber of Commerce & Industry (ACOCI) is pleased to collaborate with TPI on providing an Administrative and Executive “accredited” Training for our members and the Business Community at large. TPI’s commitment in providing high-quality educational training programs and organizational services will definitely be a benefit to the ACOCI membership.  As Jack Welch, former General Electric Ceo once stated, ‘An organization’s ability to learn, and translate that learning into action rapidly is the ultimate competitive advantage.’”

Dr Gittens shared passionately, “Our mission is to promote and support employee development and organizational effectiveness by providing high-quality educational training programs and organizational services” that are accredited and globally recognized. We believe that if a training is not accredited it is not worth offering and we encourage persons to register for non-accredited trainings.

BRIDGETOWN, Barbados - A number of start-up companies and young people with great business ideas will soon get an additional avenue to bring their plans to fruition.

Ten Habitat, a non-profit organisation which focuses on developing investor-ready start-up Caribbean entrepreneurs and regional bank CIBC FirstCaribbean have partnered in a venture to support local and regional start-ups.

Gary Brown, Chief Executive Officer of CIBC FirstCaribbean and Chairman of CIBC FirstCaribbean’s charitable foundation,  and Selwyn Cambridge, Founder of Ten Habitat, recently signed a Memorandum of Understanding at the bank’s Warrens, St. Michael offices which will see the bank supporting the work of Ten Habitat with a yearly grant of USD$15 000 for the next three years.

“At CIBC FirstCaribbean, we recognise the need for young entrepreneurs to get that grounding in starting their businesses and so we support the work of Ten Habitat and organisations like it that will hold the hands of young start-ups to guide them on the way to successful businesses,” Mr. Brown said following the signing.

Ten Habitat will work with young entrepreneurs, by exposing them to a range of hands-on support that will assist them in building their businesses. The organisation boasts a global network of experts, mentors and coaches who help the start-ups move their ideas from concept to reality and then further facilitate them by mobilising the Caribbean Diaspora to invest in those businesses.

CAY HILL, St. Maarten - Inso spa, the Company who signed on September 19th 2016 the contract for the construction of the new hospital after submission of the most competitive offer, announced that preliminary design has been completed and that it is ready to start detailed design and construction activities, aiming to provide a modern, efficient health infrastructure at the soonest.

The execution of the contract is currently stuck by a court judgement rendered at the end of a lawsuit filed by the competitor Vamed and, while the judicial procedure goes on (SZV has appealed the decision), the implementation of the project has already suffered serious delays, depriving St. Maarten’s population of a hospital which is strongly needed to enhance the quality of health care on the island.

“We are dismayed by the motivations argued by our competitor, due to which the court has issued its verdict” stated Mr. Alessandro Cambri, Inso Caribbean Area Manager “It’s very hard for us to understand the reason of such a situation.

Our offer has obtained a very high quality score during the technical evaluation carried out by five different teams of independent international advisors with proven experience in hospital projects worldwide and specifically in the Caribbean. What’s surprising the most is that the advisors have evaluated all the aspects of Inso’s offer in a transparent and in-depth process that has no precedent in the history of public procurements in Sint Maarten, but nonetheless groundless allegations by Vamed have managed to hinder the development of the project”.

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