KRALENDIJK – The public prosecutor of the BES Public Prosecution Service (OM BES) demanded fines of $40,000 and $10,000 respectively against two individuals during a criminal case hearing last week.

The individuals were suspected of having provided financial services for years, in collaboration with each other and a third party, without possessing the required license from De Nederlandsche Bank (DNB). According to the Public Prosecution Service, this practice is commonly referred to as “underground banking.”

Following signals received by the Financial Intelligence Unit, the Caribbean Netherlands Police Force (KPCN) conducted an extensive investigation into the money transaction activities.

The investigation revealed a total transaction volume of over $2.2 million. It was confirmed that the two individuals had systematically provided financial services without the mandatory license from DNB.

The financial services in question involved receiving cash on Bonaire, transferring the money (after deducting commissions) to an account in the Dominican Republic, and then making the funds available to recipients there.

In January 2023, a house search was conducted as part of the case. At the time, the money transaction activities were still ongoing but were subsequently ceased.

Unfair Competition

Conducting money transactions without the required license constitutes unfair competition against licensed money transaction offices that comply with legal obligations. The absence of legal transaction offices on the BES islands at that time does not diminish the criminal nature of the offense.

The OM BES also emphasized that illegally operating money transaction organizations are convenient vehicles for laundering proceeds from criminal activities. Cash payments make the money flow difficult to trace, and the legally required client due diligence is not performed.

This jeopardizes the integrity of the financial system.

Confiscation

Finally, the Public Prosecution Service announced plans to initiate confiscation proceedings to recover the financial gains obtained by the suspects.