Curacao central bank to intervene following illegal online gambling case

News on 13 Nov 2018

The Central Bank of Curaçao and Sint Maarten (CBCS) has confirmed to local newspaper the Curacao Chronicle that it is ‘taking the necessary measures’ against the Carmanco NV trust office, which has apparently  once again fallen foul of the Dutch gambling authorities in regard to illegal online gambling.

Carmanco is a subsidiary of Curaçao Trust Management NV, which holds a licence from the central bank  to offer trust services, and the current issue is believed to involve a hefty Euro 350,000 fine recently imposed on Curaçao-based Cyberrock NV by the Dutch Gaming Authority (KSA).

The Chronicle notes that this is not the first time that Carmanco has been penalised by the Dutch gaming authorities for facilitating an operator engaged in illegal activity, and that in 2015, Carmanco director George Praag received an official warning from the KSA and pledged to improve the company’s performance.

Carmanco was reportedly also convicted in another case by a judge in Willemstad earlier this year for ‘improper management’ and ‘seriously blameworthy and therefore unlawful action’.

“Under the CBCS Policy Rule on Integral Operations in Incidents and Integrity-Sensitive Functions, a supervised institution must inform the Bank of its own accord and without delay about incidents that have occurred. The Bank has taken note of the information regarding Carmanco N.V., an entity that provides management services under the responsibility of a license holder and will take the necessary measures “, a spokesman advised the Chronicle in an official central bank statement.

Weighing in on the issue, the Dutch regulator told the newspaper: “It seems indeed that Carmanco does not follow the promise made earlier. This is a bad thing for Dutch consumers in particular. They are now not protected. The KSA is considering other steps.

“In the past, the KSA strongly advised trust offices to reflect on their services to gambling companies. This advice is still valid. The KSA has good contacts with the competent authorities in Curaçao. “We aim to work together in the future against illegal online gambling.”

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