Effective January 1, 2025, significant changes have been made to the deposit guarantee scheme for the Caribbean Netherlands (DGS BES). The amendments include an increase in the maximum coverage amount, the removal of the residency requirement, and the introduction of a funding mechanism. The measures aim to strengthen financial stability and enhance consumer protection.

The deposit guarantee, introduced in 2017, was subject to a scheduled evaluation after several years. The review revealed that the existing scheme did not sufficiently meet its objectives. The most notable change is the increase in the coverage limit from USD 10,000 to USD 25,000, ensuring that more than 90% of account holders will be fully protected. This level of coverage aligns with the European Netherlands and meets international standards set by the International Association of Deposit Insurers (IADI).

Additionally, the removal of the residency requirement means that all account holders at banks in the Caribbean Netherlands are now protected, regardless of their place of residence. The funding of the deposit guarantee has also been revised, with banks required to contribute in advance to a fund designed to finance future compensation payments.

Administration

The scheme is administered by De Nederlandsche Bank (DNB). Deposit guarantees offer free protection for deposits ranging from one cent to a maximum of USD 25,000 per person or business, per bank. This includes checking and savings accounts, as well as term deposits. If a bank under the scheme were to fail, DNB ensures compensation for eligible account holders.

These changes represent a significant step toward ensuring financial security and trust for account holders in the Caribbean Netherlands.