Curaçao’s finance minister: “We need to take the necessary steps to prevent grey-listing”

Javier Silvania delivered the welcome address at SiGMA Curaçao.

Curaçao.- Javier Silvania, Curaçao’s minister of finance, has warned that Curaçao’s new gambling legislation is vital to help prevent the Dutch Caribbean island from being grey-listed for AML concerns. Giving the opening address at the SiGMA Curaçao, he said he understood some operators’ fears about of change but stressed that the objective was not to disrupt.

“This is about shaping the future of Curaçao as a jurisdiction in a way that is transparent, accountable, and prosperous,” he said. “To those who have apprehensions about this legislation – I hear you. Changes are always met with skepticism, especially when they impact long-established practices. However, for all the operators out there our intent is not to disrupt, but to elevate.”

He said there were three fundamental reasons why the new legislation and processes are good for Curaçao as a gambling jurisdiction and a country, citing economic, social and reputational benefits. He noted that Curaçao is the world’s largest jurisdiction in terms of gambling operator numbers but said the public purse and the people of this island “do not get even a fraction of what they deserve, given the staggering amount of revenue that flows through the island”.

He said: “In 2022, the Malta Gaming Authority reported licensing revenues of €82m. That is €82m just from fees to the authority. During the same time period of one year the Curaçao government and Gaming Control Board were entitled to the approximate amount of €250,000.”

Expanding on the performance of other jurisdictions, he said: “Online gaming has been a game changer for the economies of small states such as Malta, Philippines, Gibraltar, Isle of Man, Alderney and Curaçao. In the case of Malta, online gaming has transformed the Island’s economy since it was introduced in 2014 as it went from depending primarily on tourism to a diverse economy that includes hospitality, property, financial services and IT services.

“In 2019, online gaming generated a total of €1.65bn for the Maltese economy, that is, more than 12 per cent of the total year’s GDP. Figures have dipped since Covid had an impact; however the economic impact is undeniable. Comparatively although the Isle of Man does not publish figures at the same depth as Malta, there are records of e-Gaming accounting over 20 per ent of GDP – a value of approximately £1bn.”

Reputational factors

But a major reason for Curaçao’s new gambling regulation is the island’s reputation. Malta and Gibraltar, both hubs for online gambling operators, have previously been found at fault by the Financial Action Task Force (FATF). Gibraltar remains on the watchdog’s greylist of untrustworthy jurisdictions.

Silvania said: “AML is a key criteria of financial evaluations, one of which Curaçao will be subject to next year.  And let me be very clear about it, the likelihood of us being placed on the grey list because our lack of AML legislation within the gambling sphere is real, and it is worrying.”

“We absolutely and categorically need to take the steps necessary to prevent grey-listing and the LOK provides the safety net that we desperately need,” he added.

Curaçao has begun a transition period under which existing licensees must apply to retain their Curaçao online gambling licences under its new system.

This week, the new Curaçao Gaming Control Board (GCB) announced that Hilary Stewart-Jones has joined the regulator as an advisor. The solicitor is an independent consultant at the gambling law firm Harris Hagan. She is also chair and CEO of the software provider, Skywind Group.