TECHNICAL ASSISTANCE REPORT—IMPLEMENTATION OF RISK-BASED SUPERVISION
This Technical Assistance report on the Kingdom of the Netherlands-Curaçao and Sint Maarten was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed in June 2021.
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Implementation of Risk-based Supervision (Diagnostic
Review to Determine Harmonized Framework for
Ralph Lewars (Long-term Expert) and Naren Sheth (Short-term Expert)
Anguilla, Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands, Curaçao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Maarten, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago, Turks and Caicos Islands
Canada, United Kingdom, European Union, Netherlands, Mexico, Caribbean Development Bank
II. Organization Structure and Staffing of the Supervision Department
III. Supervisory Framework and Assessment Methodologies
A. Risk-Focused Surveillance Framework
B. Assessment Methodologies
IV. Proposed Harmonized Framework for Supervisory Assessments
A. Essential Features
1. Key Recommendations
1. Supervision Department: Organization Structure, Responsibilities, and Key Deliverables Error! Bookmark not defined
2. Workflow Processes (Insurance)
3. Risk-Based Supeviosry Framework adopted by CARTAC Member Countries
Anti-Money Laundering/Combatting the Financing of Terrorism
Capital, Assets, Management, Earnings, Liquidity, and Sensitivity to Market Risks
In response to a request from the Central Bank of Curacao and St Maarten (CBvCSM) to assess the practicality and appropriateness of developing and implementing a harmonized risk assessment/rating system for assessing the risk profile of banks and non-bank institutions, insurance firms, asset management and trust companies, a Caribbean Regional Technical Assistance Centre (CARTAC) mission comprising Ralph Lewars, CARTAC’s Resident Adviser for Financial Sector Regulation and Supervision, and Narendra Sheth, CARTAC’s Short-Term Expert (STX) provided the assistance requested remotely during the period February 1 to 5, 2021.
The mission met with Mr. Arnoud Vossen, the Deputy Director of the supervision department and members of his management team; and conducted separate discussions with staff members from the different functional units within supervision, including Account Supervision, and Expert Supervision. The mission also met separately with the President of the CBvCSM, Mr. Richard Doornbosch and the Deputy Director on the last day of the mission to discuss the mission’s findings and preliminary recommendations. The mission wishes to thank the Deputy Director and staff of the supervision department for their cooperation, productive discussions, and feedback provided on the draft version of the Report.
This Report presents the mission’s assessment and main conclusions.