A trust fund is a legal entity where one party, the settlor, can set aside money or property for the benefit of another. A perfect example of this fiduciary service is of trust funds are the ones equivalent to long-term savings accounts set up by parents or grandparents in order to benefit a child.
The property can take the form of money, stocks, bonds, or an actual physical property but growth assets are typically placed into trust for the tax benefits explained below. A trustee holds it in a trust fund. The trustee is the person who looks after the property for the benefit of the child. The grantor, who contributed property to the trust, and the trustee can be the same person, but this is not necessarily so. Trusts can be created during a person’s life or in a will after death.
Trust Curacao Fiduciary Services
Personal trust services or corporate trust services come with numerous advantages.
In the case of a child too young to properly care for the property, a trust can act as spendthrift protection. The assets are protected for the beneficiary by the trustee until the child has reached the age declared in the trust. Often a trust fund will set this age to be the majority before it is accessible by the child.
Because of the removal of property from the trustee into the trust, this essentially protects these assets from the attack of future creditors. A discretionary trust can for example remove the ownership of the assets from the trustee while still benefiting him. Combines with the privacy benefit described below, this can asset protection cab pose legal and moral issues.
The grantor to the Curacao trust also benefits in the form of tax savings. Income, estate, and gift tax advantages are usual when setting up a Curacao trust. To comprehend the advantages in taxation of the establishment of a trust, contact a professional Curacao tax advisor or a financial consultant.
A Trust in Curacao can also be established for privacy purposes since the declarations in a will are public whereas those in a trust are not.
Trusts can be set up by trust companies in business agreements involving multiple parties to govern their structures.
Access to Trust Companies in Curacao
Once a trust fund is created, the funds pertain to the child. The grantor is not able to claim these funds. Based on the limits set forth by the trust, access by the child may involve part of the income or principals from the trust. In general trusts are created to limit the access to the trust fund by a minor without approval from the trustee.
Several types of international trust services rendered by Trust Service Companies or by Curacao Banks are available in Curacao.
As a result of several criminal investigations in relation to alleged VAT fraud involving a large number of customers, and subsequent attachments on funds FCIB has come into a position in which it no longer is able to process payments, also because a number of correspondent banks have terminated their relationships with FCIB. The First CuraÃ§ao Bank was closed down by the Dutch in 2006 and is suspected by Dutch and British authorities of having run banking services which allowed criminals to siphon billions of dollars out of European treasuries via carousel fraud. Read the Guardian article.
Central Bank Oversight
The emergency measure includes that the powers of management and supervisory directors of FCIB now exclusively rest with the Bank van de Nederlandse Antillen. The Bank van de Nederlandse Antillen will do its utmost to as soon as possible return the funds to the creditors, after a thorough investigation has been completed.
Bank License of First Curacao
On October 9, 2006, the Central Bank of the Netherlands Antilles, further in this article referred to as the Bank, revoked the license of First CuraÃ§ao International Bank NV established in the Netherlands Antilles to operate as a credit institution. Subsequently, the Bank requested the Court of First Instance in the interest of the FCIBâ€™s accountholders to subject FCIB to the emergency measure. The Court honored the request and pronounced the emergency measure on the same day. The measure has authorized the Bank, to the exclusion of any other party, to perform all the powers of FCIBâ€™s managing and supervisory directors and to subsequently unwind FCIB as a banking institution.
Code Wire Transfer
In view of a court ruling in CuraÃ§ao of February 16, 2007, First CuraÃ§ao International Bank has prepared a procedure for closing accounts and making payments of account balances. All clients need to fully satisfy requirements.
Contact First Curacao Bank
Note that no telephone calls will be accepted either at the Central Bank or at the offices of First Curacao International Bank N.V. In order to receive any information on the status of your transfer or for any other information related to your account, you should send an e-mail to email@example.com.
Your inquiry will be investigated by the appropriate staff and replied to by e-mail within two business days.
Maduro Curiel Bank Curacao (MCB Curacao) was the first commercial bank to establish in the Netherlands Antilles, opening its doors on January 2, 1917 in the capital city of Curacao, Willemstad. The establishment of the Shell Oil Refinery on the shores of the island’s great natural harbor, combined with the opening of the Panama Canal, made Willemstad a busy port on the world shipping routes. The resulting business expansion made then existing banking methods obsolete, for at that time financial transactions were handled by merchants and exchange houses.
Realizing the need for improved banking facilities, the founder, Mr. Joseph Alvarez Correa, fondly known as Shon Jojo, in association with the well-known trading company S.E.L. Maduro & Sons NV, opened the doors of Maduro’s Bank with an initial capital of ANG 1,000,000.- (the Netherlands Antilles guilder now equals approximately US$ 0.56). In 1932 Maduro’s Bank merged with Curiel’s Bank and Maduro & Curiel’s Bank was born. MCB Founder
Since 1970, MCB has been associated with The Bank of Nova Scotia of Toronto, Canada.
With 31 branches on Curaçao, Aruba, Bonaire, St. Maarten and St. Eustatius, Maduro Curiel Bank Curacao is the largest commercial bank in the Dutch Caribbean. Through the past eight decades, Maduro & Curiel’s Bank has also grown in many areas of non-banking financial services including insurance brokerage, underwriting and loss adjustment, in portfolio management and investment services, private banking, and in offshore trust and corporate management services. You can find out more details about MCB Curacao on their wikipedia page.
MCB Curacao Bankomatiko
Using the Bankomatiko ATM is a fast, easy, and efficient way to do many banking transactions. Withdraw up to NAfl 1800,- or equivalent in USD in cash per day from current or savings accounts with a maximum of Naf. 1000,- per withdrawal. Request a checkbook, transfer money from one account to another, make deposits, pay utility bills, or simply make a balance inquiry. Request a mini-statement of the last ten transactions on your account.
Access cash withdrawal services by using the MCB Group’s Bankomatiko card or by using VISA, MasterCard and Kompa Leon credit cards or any card with a Cirrus, Maestro or Plus logo.
Maduro Curiel Bank Curacao Credit Cards
Bankomatiko/Maestro is the first on-line, international debit card in the Caribbean. The Bankomatiko card is a debit card. Use the Bankomatiko card in all establishments worldwide that have the Maestro logo. It can be used locally in many supermarkets, pharmacies, gas stations, and restaurants.
Bankomatiko ATMs are located throughout the Netherlands Antilles, Aruba, and around the world. With the Bankomatiko card, withdraw cash from more then 350,000 ATMs in 68 countries that bear the Cirrus and/or Maestro logo including more than 100 in the Netherlands Antilles and Aruba. Visit www.mastercard.com for Cirrus/Maestro ATM sites around the world.
Other credit cards available are:
Kompa Leon Efektivo
which can be used for every day purchases and payments and is safer than paying with cash. Kompa Leon Efektivo is accepted at over 4000 merchants and at all PAGOmatiko terminals in the Netherlands Antilles and Aruba.
Maduro Curiel Bank AAdvantage Visa Card
earns 1 mile for every US$ spent on purchases. It is accepted worldwide at more than 21million locations worldwide, including Netherlands Antilles & Aruba.
Maduro & Curiel’s Bank AAdvantage Kompa Leon Card
earns 1 mile for every NAf. 2,- spent on purchases. It is accepted at merchants in CuraÃ§ao, Bonaire and St. Maarten.
MCB American Express Card
with dual Currency Purchases. Purchase in NAf at MCB-groups merchants in the Netherlands Antilles and in US$ outside the Netherlands Antilles. Pay in NAf for purchases in NAf and US$ for US$ purchases.
is accepted in more than 30 million establishments worldwide. Cash advances from Bankomatikos and over 900.000 Automated Teller Machines worldwide and all participating banks displaying the MasterCard logo.
Visa Classic Card
is accepted in over 150 countries and 20 million establishments worldwide. Cash advances from Bankomatikos and over 800.000 Automated Teller Machines worldwide and all participating banks displaying the VISA/ or PLUS logo. Includes a Travel Accident Insurance Coverage of US$ 75.000.
SWIFT & IBAN Transfers from MCB Curacao
Main correspondent banks for transfers in Euros and US Dollars for Maduro and Curiel have changed recently.
Although the bank will send a message to route payments to the new banks, inform any parties who make regular payment to your accounts at Maduro & Curielâ€™s Bank in Curacao, to ensure timely processing of the incoming payments as follows:
All wire transfers in Euro’s and US Dollars are to be directed to ING Belgium for Euro’s and to Standard Chartered Bank for US Dollars:
Payments in Euros to:
ING Belgium SA/NV
SWIFT BIC: BBRUBEBB
Beneficiary Bank SWIFTCODE MCB:
For Further Credit Of: Name, Place and Account at MCB
Payments in United States Dollars to:
Standard Chartered Bank,
New York, NY – U.S.A.
SWIFT BIC: SCBLUS33
Beneficiary Bank SWIFTCODE MCB:
For Further Credit Of: Name, Place and Account at MCB
Maduro & Curiel’s Bank NV
Plaza Jojo Correa 2 – 4
The economy of CuraÃ§ao is mainly based on tourism, oil refining and international financial services. It has a vast network of banks, trust in Curacao management and investment companies, lawyers, notaries public, accountants, management companies etc. Telephone, telefax and other communication tools are state of the art. CuraÃ§ao is easy to reach by air and regular services are maintained from the U.S. and Europe.
Through the BRK (Belasting Regeling Koninkrijk), the tax arrangement of the Kingdom of the Netherlands a Netherlands Antilles company has access to the extensive tax treaties network of the Netherlands. The Netherlands Antilles and CuraÃ§ao in particular have therefore over the years developed into a reputable financial center for the offshore world.
The local currency is the Netherlands Antillean Guilder (NAF) which is pegged to the US dollar. Since 1973, the exchange rate has remained fixed at Naf. 1,79. to US$ 1.00, evidencing a stable monetary environment.
The rates of other currencies are based on their rate of exchange to the U.S.dollar.
The official language is Dutch, however most of CuraÃ§ao diverse population of approx. 160.000,00 is quadrillingual speaking Dutch, English and Spanish as well as the native language Papiamento.
Curacao is the largest and busiest of the island group and a multi-cultural leader in the southern Caribbean. More than 160,000 from 50 nations call the island home. The United Nations Educational Scientific and Cultural Organization (UNESCO) honored the capital city Willemstad, by designating it a World Heritage Site beacuse of its striking Dutch colonial architecture.
Upscale shops filled with fine European imports line pedestrian streets in colorful Willemstaad. Shoppers coming out of the cruise ships look for bargains at the markets. After dark, visitors join locals at restaurants featuring cuisine from a dozen countries, then try their luck at the elegant casinos or dance to live music at one of the many nightclubs.
A company engaged in the insurance business in the Netherlands Antilles must have the legal status of either a limited liability company, called Naamloze Vennootschap (N.V.), or a mutual insurance company.
The Central Bank (Bank van de Nederlandse Antillen)
The Central Bank is the official supervisor of the Antillean banking system and financial institutions. The Bank was established in 1828 by King William I and is the oldest Central Bank in the Americas.
The Bank’s most important objectives are to maintain the external stability of the Netherlands Antillean Guilder and to promote the proper functioning of the financial system in the Netherlands Antilles.
The Insurance Supervision Act (National Gazette 1990, no.77) regulates the supervision of the insurance industry in the Netherlands Antilles. Captive Insurance Companies and Reinsurance Companies are regulated by separate decree. Supervision is executed by the Central Bank.
Cost of Operation
Generally speaking, the following may be used as a rule of thumb (subject to changes):
Cost of incorporation:
-notary fee, stamp duty, license, registration, Chamber of Commerce US $ 5.400 to US $ 8.600
Cost of operation:
-supervision, audit etc. US $ 4.500 to US $ 7.300
-management services US $ 3.500 to US $ 50.000
Banks & Insurance Companies
Here is a directory of companies and services offered in Curacao. Some of these companies will offer off shore services such as offshore bank accounts, or offshore IT service:
Banco di Caribe
Bank Ned. Antillen
Big net N.V.
Kos ta bon
New Winds Realty
International Fine Living
Curacao Trust Management
A captive insurance company is typically defined as a wholly owned subsidiary of a non-insurance related group of companies established with the prime purpose of insuring the group’s risks. There are two main types of captives: single parent or group, the latter typically owned by a number of companies with similar exposures. Captives can be used to provide coverage either directly or as reinsurance of a fronting insurer.
Rationale of a Captive
Traditional insurance is not always the most economical method of financing a group’s risks. When the risk profile is favorable or when losses can be calculated or forecasted in advance, risk retention or self insurance may be more advantageous.
Captives can be very beneficial; the most important advantages being :
savings in insurance premiums spent underwriting
profit retained within the group interest on premiums retained in the group
cheaper overhead than those hidden in market premiums
direct access to the more flexible reinsurance markets
focus on risk management tax considerations
Prerequisites for captive formation
A captive is a risk financing instrument, however, which can only be used when the following requirements can be fulfilled :
sufficient spread of risk
sufficient premium volume
favorable claims records (or at least calculable)
A captive will also need capitalization and will incur management expenses.
The establishment of a captive insurance company requires careful consideration and the decision should only be taken after an in-depth feasibility study, which should preferably consider at least 3 main elements
1. Insurance Considerations
It should be remembered at all times that captive insurance is regarded as one of the more sophisticated forms of risk financing but basically it remains self insurance.
Before deciding on the establishment of a captive a profound analysis of the group’s risks, claims record, risk management and risk bearing capacity should be made.
A typical feasibility study will at least comment on:
the current insurance program
claims statistics over a period as long as possible
risk bearing capacity of the group related to turnover, profit and liquidity
alternative risk financing systems
reinsurance protection for the captive
claims forecasting on basis of mathematical models
At least it should also be considered to establish the captive in the home country of the group, but very often local requirements of supervision by authorities, fiscal aspects and lack of professional management, direct the captive to a specialized captive domicile.
3. Management Services
Professional management of the captive is of the utmost importance and the (future) captive owner should satisfy himself that he is acquiring the best services available that provide not only the required insurance substance and administrative organization but also a good working relationship with the relevant supervision- and other authorities.
For more information, visit MCB website on risk management.