Creating a legal entity in Curacao is generally quick. Companies only need to comply with the local-regulator’s prerequisites and not violate generally accepted rules. However, local legislation regarding the licensing of companies is updated periodically and not everyone understands what prerequisites they need to follow.
The unrestricted rules remain largely unchanged in the region. However, there are several nuances that users need to keep in mind because some of them will come into effect this year. Let’s try to understand what points will be affected by the changes and how they will affect the work of enterprises seeking to obtain a local license.
Global licensing changes will affect 7 items
According to recent reports, the changes will be implemented in 7 points, namely:
- License Issuance Control Bodies;
- General License systems;
- the introduction of new types of permissions;
- the fees to be charged;
- personnel for corporations;
- company audits;
- end-user protection.
Of course, all of these items are extremely important and before the co-founders of a legal entity apply for licensing, they need to understand what changes will be introduced and the implications for them.
Change of governing bodies
The region decided to create a new supervisory body instead of the Gambling Control Board. Now licensing issues will be handled by representatives of the Gambling Authority. Representatives of this body will be fully under the control of the Curacao`s Government.
This means that the government will be able to control and receive operational information about all holders of local permissions. Accordingly, the process of obtaining and confirming permissions will become more complicated for corporations. Local authorities assure that this step will help to minimize the number of fraudulent applications and it will not affect the work of honest companies.
Abolition of the sub-licensing system
Before the new requirements were introduced, applicants for licensing could apply for a general-license, which was approved by the regional government. To obtain such a license, a company had to pass an inspection and meet local requirements. But previously these requirements were very low and inspections were simplified.
After the introduction of changes, the regulator will be able to issue 2 kinds of permissions to corporations, namely B2C and B2B. For those legal entities that have previously issued General Licenses, there will be an opportunity to switch to new licenses within a year and a half.
Introduction of a new type of licensing for B2B
Previously, it was sufficient for operators to obtain a General License and with it they could provide almost any service, cooperating with all vendors. However, now they are obliged to use software from vendors who have also obtained authorization to conduct such activities on the territory of Curacao.
According to analysts, this significantly reduces the opportunities for cooperation between licensees, because the choice of companies will be significantly reduced. But the local authorities consider such a step correct for the development of business, which was registered in this region.
Increase in commissions and fees
As before, corporations will need to pay enrollment and license fees once a year. However, if previously these fees were paid to the regulator, now the amount will have to be transferred to the Government of Curacao. There is also talk of a possible increase in the cost of licensing.
This process may partly discourage those wishing to obtain permission, but still, the rates of fees are lower than in other regions.
Personnel prerequisites
Previously, licensees were required to hire a minimum of one director or other high-ranking employee among Curacao residents. Under the new prerequisites, the corps must hire a minimum of 3 residents for key positions. Corps must also appoint trustworthy officers to oversee anti-money laundering procedures and responsible gaming controls.
Such changes will help put more focus on combating illegal transactions and help increase end-user security. Therefore, companies are unlikely to object to such innovations.
Checks for co-founders and key employees
The biggest focus of the regulator’s shifts is on corporations’ sources of income and verification of their operations. Under the new legislation, an updated protocol will be introduced to verify a licensee’s co-founders, key employees, and persons who are related to the licensee.
This will place the most emphasis on verifying the origin of income of these individuals and applicants. Previously, this verification was less thorough, which was generally satisfactory to licensees. The new requirements will increase confidence in licensees, but pre-licensing verification may be somewhat delayed.
Verification of winnings payouts
Gambling sites could previously lose their permission if users complain about non-payment of funds. Now the accountability will not only be reputational, but also material. A licensee who fails to pay winnings to users may be fined and have its license revoked (or suspended).
This approach is generally supported by all players in the industry because non-payment of winnings affects the reputation of the industry.
Who will help with the preparation of documents
Of course, applicants for a license can try to collect a package of documents themselves and even get it. But a more reliable option is to seek advice from our staff. We are a team of professional lawyers and each of us regularly monitors all changes in the prerequisites of regulatory-authorities in any country.
With our help, you will gather the right package of documents and will be able to start working on the market at the moment when your competitors are actively correcting their own mistakes.