PHILIPSBURG, Sint Maarten – The Public Prosecutor’s Office has reached an out of court settlement with two car dealerships for failure to report unusual transactions to the Financial Intelligence Unit.
During the investigation in 2016, a total 11 vehicles were seized by the RST Kingdom Police Task Force, under the direction of the Public Prosecutor’s Office. These vehicles were leased by one of the two car dealerships to a number of clients.
By investigating the paper trail regarding these leases, it has come to light that this car dealership failed to report some of the financial transactions regarding the lease of these vehicles as unusual. In the course of the investigation further transactions came to light relating to another car dealership that should have been reported.
Reporting of unusual transactions to the Financial Intelligence Unit is obligated by law and aims to prevent criminal money finding its way to legitimate businesses. According to the Public Prosecutor’s Office these transactions should have been reported by the car dealerships to the Financial Intelligence Unit, based on the applicable laws and regulations.
The car dealerships have agreed to pay a fine of respectively USD 50.0000 and USD 25.0000 to the Public Prosecutor’s Office. One of the dealerships waived its right to the 11 vehicles that were seized in 2016.
The out of court settlement was reached because the car dealerships have shown to the Public Prosecutor’s Office that they have improved their internal procedures and staff awareness as regards to identifying and reporting of unusual transactions. Taking the case to court would, according to the Public Prosecutor’s Office, serve no other purpose, as the car dealerships have expressed their willingness to continue to improve their internal procedures and work together with the Financial Intelligence Unit and the Public Prosecutor’s Office on issues such as these.
The vehicles were sold in 2016 and proceeds given to Country Sint Maarten. No further statements will be given regarding this investigation.
