Navigating Compliance: Your Essential Guide to Buying a House on Curaçao

Navigating Compliance: Your Essential Guide to Buying a House on Curaçao

“How Do You Pay for All That?”

…is a question you might not expect from a real estate agent after agreeing on the purchase price of your new house in Curaçao.

Why is Compliance on Curacao Important?

It marks the beginning of a careful compliance process when your dream of buying a house in Curaçao comes true. Following compliance regulations may seem like a maze of rules and formalities, but it’s an essential part of acquiring your piece of paradise.

Don’t worry, as experienced real estate agents on this sunny island, we are ready to guide you through every step. Let’s dive into the why, the how, and especially how we can support you in this process.

FATF and Their Mission

Compliance is the key to a safe financial world, established to prevent money laundering, terrorist financing, and other financial crimes. This mission began in 1989 with the founding of the Financial Action Task Force (FATF) in Paris. Their guidelines have a global impact, including on our island of Curaçao.

What is the Role of the FIU?

Here in Curaçao, the Financial Intelligence Unit Curaçao (FIU) keeps an eye on ensuring that everyone providing certain financial services, including us as a real estate agency, adheres to the rules. Since 2017, the legislation regarding this has been tightened, directly affecting how we conduct our business as real estate agents in Curaçao.

But don’t panic! Although the compliance process sounds complex, it is essentially a standard procedure designed to protect you, us, and the island. Verifying your identity, understanding who the ultimate beneficiaries are behind a transaction, and tracing the source of funds are all steps that ensure the integrity of the financial world. And yes, this means paperwork. But here’s the beauty of our role: we are here to help you and ensure these necessary steps go as smoothly and stress-free as possible.

The Notary in Curaçao and Compliance

Not only real estate agents but also notaries in Curaçao are bound by these compliance rules. When you take the big step of buying a house, the notary will request and review similar documents as part of their due diligence. This is crucial because without a complete compliance process, the transfer of real estate simply cannot take place.

Yes, you read that right: no compliance, no keys to your new house.

What Does the Compliance Process in Curaçao Involve?

The compliance process consists of two components:

1. Client Due Diligence: We, as real estate agents, must identify and verify who we are dealing with. We are required to establish your identity, which we do by requesting your original identity document or a notarized copy if you submit it electronically. If you do not yet live or reside in Curaçao, we also need a notarized extract from the civil registry of your place of residence or stay for our records.

   If you are acting on behalf of a legal entity (such as a BV, NV, association, or foundation), we need a recent extract from the Chamber of Commerce. We also need proof of your authority to act, such as a copy of the statutes where this is arranged. Finally, we need insight into who the shareholders are and who the UBO (Ultimate Beneficial Owner) is. Therefore, we will always end up with the natural person and need to include their documents in our records.

   If you are designated as a PEP (Politically Exposed Person), additional documents may be required. To check if you are designated as a PEP, we use the services of Namescan.

2. Proof of Source of Funds: We use a Source of Wealth form where you can indicate how the money you are using to pay for the purchase was earned. This could be from employment, inheritance, or a previous real estate transaction. We then need proof of this. Curious what that form looks like? Email us, and we will gladly send it to you.

Why All This Emphasis on Compliance?

Imagine a world where money can flow without control, where the origin is unclear, and where the financial sector is vulnerable to abuse. By following these rules, we protect not only the economic integrity of Curaçao but also your investment and future on the island. It’s not just about complying with the law but ensuring a safe, transparent, and sustainable real estate market.

And let’s be honest, the thought of buying a house abroad can be overwhelming, especially with the extra layer of compliance regulations. But that’s where we, as experienced real estate agents, come in. We are here not only to find the perfect home for you but also to guide you through every step of the process, including the sometimes complex world of compliance.

International Fine Living does its best to inform people who buy or sell a house in Curaçao as accurately as possible. However, our time is limited, and we may not always be able to publish the latest updates. We recommend verifying the provided information with the appropriate authorities or companies. No rights can be derived from the accuracy of the provided information. Other real estate agents in Curaçao, take note: all our texts are copyrighted. It is not allowed to copy texts or parts thereof. However, anyone is welcome to link to our blog.

Categorieën: Curaçao island, Curaçao Real Estate

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