COCI Requires UBO Disclosure — But Where’s the Law? – StMaartenNews.com – News Views Reviews



PHILIPSBURG — Business owners across St. Maarten are raising eyebrows — and questions — following a recent directive from the St. Maarten Chamber of Commerce & Industry (COCI) requiring the disclosure of Ultimate Beneficial Owners (UBOs) of all registered companies.
In an official flyer distributed by COCI, businesses are instructed to pick up sealed UBO declaration packages, complete the documents, and return them — sealed — to the Chamber or submit them via its online portal. Failure to comply, although unspecified, appears to imply administrative consequences.
But while the Chamber is moving full steam ahead, one critical question remains unanswered: What is the legal basis for this requirement?
International Pressure, Local Confusion
The UBO disclosure initiative is not happening in a vacuum. It stems from international anti-money laundering (AML) standards set by the Financial Action Task Force (FATF) and its regional counterpart, the Caribbean Financial Action Task Force (CFATF). These standards obligate jurisdictions to maintain a registry of the real individuals who ultimately own or control legal entities — often referred to as UBOs.
St. Maarten, as part of the Kingdom of the Netherlands, is expected to align with FATF’s Recommendation 24, which mandates that accurate and up-to-date UBO information must be available to competent authorities to combat money laundering, terrorist financing, and other illicit activities.
However, critics argue that international obligations do not automatically override national sovereignty — especially when no enabling legislation has been debated or ratified by Parliament.
Law or Administrative Overreach?
“This is a troubling trend,” said one concerned entrepreneur who preferred to remain anonymous. “We are being required to submit sensitive ownership information to the Chamber without a clear legal mandate. Where is the law that says we must do this?”
Indeed, a review of the Parliament of St. Maarten’s legislative agenda reveals no formal law passed regarding a UBO registry or mandatory disclosure. If the mandate comes from a Kingdom-level directive or pressure from the Central Bank of Curaçao and St. Maarten (CBCS), it has not yet been codified into national law.
Even more concerning for some is the lack of clarity about who has access to the data, how it will be used, and what penalties — if any — apply to non-compliance.
FATCA? Not Quite
Some business owners have mistakenly linked the UBO requirement to the U.S.-imposed Foreign Account Tax Compliance Act (FATCA). But FATCA is aimed at identifying U.S. taxpayers holding foreign accounts and has no direct connection to the UBO framework.
UBO registries are instead a feature of global AML compliance and are enforced primarily to identify shell companies, nominee directors, and money laundering structures — not necessarily to catch tax evaders with ties to the United States.
Submission Requirements
According to the COCI flyer, companies must:
- Retrieve their sealed information package.
- Fill out and sign the included declaration forms for each shareholder company.
- Return the sealed envelope to COCI in person or via the COCI portal (followed by physical submission for legal compliance).
Submissions can be made via notaries, lawyers, or personally at COCI.
Call for Transparency
If this process is to continue, greater transparency is urgently needed. What is the legal framework behind this effort? Has Parliament reviewed or approved this registry? Who will be held accountable if this information is misused or leaked?
Until such questions are answered, the business community is left navigating a compliance mandate that is heavy on international expectations but light on local legal legitimacy.
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Related articles:
Letter to the Editor: A response to the COCI UBO article
UBO Law Official Since 2024 — Yet Business Owners Just Now Being Warned About July 1st Deadline
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