Deposit Protection up to XCG 50,000 Starts July 1 Curacao Sint Maarten to Follow Later Date
Deposit Protection Up to XCG 50,000 Starts July 1 in Curaçao – Sint Maarten to Follow
Starting July 1, 2025, individual account holders in Curaçao will enjoy deposit protection of up to 50,000 Netherlands Antillean guilders (XCG) per bank. This initiative, established under the new Deposit Guarantee Scheme (DGS), applies to licensed credit institutions supervised by the Central Bank of Curaçao and Sint Maarten (CBCS).
Meanwhile, credit unions will offer a lower coverage limit—up to 25,000 guilders per account holder. The CBCS confirmed these figures while announcing the formal rollout of the DGS in Curaçao. Although Sint Maarten has not set a launch date, it plans to implement the scheme at a later stage.
Managing the Guarantee Fund
Coverage Applies Per Account Holder—Not Per Account
Crucially, the DGS protects the total deposits held by an individual at a single bank, rather than each account separately. For instance, someone holding three accounts at the same bank receives protection for the combined total—capped at 50,000 guilders. This distinction matters greatly and helps depositors understand the true extent of their coverage.
Building Confidence and Stability
By safeguarding depositors’ funds, the DGS aims to boost public trust in the financial system and reinforce economic stability in the monetary union of Curaçao and Sint Maarten. The CBCS emphasized this objective when unveiling the scheme.
Legal Framework and Implementation
The scheme became official on March 31, 2025, following the publication of the National Decree on the Deposit Guarantee Scheme. That same day, the Minister of Finance of Curaçao signed a ministerial regulation outlining how the DGS will function in practice.
This legal foundation creates a robust framework that enables smooth implementation and ensures that all eligible institutions meet the CBCS’s regulatory standards.
Who Qualifies for Coverage?
Only locally licensed credit institutions, such as domestic commercial banks, fall under the scheme’s protection. The DGS excludes foreign-based or international banks unless they hold a formal license issued by the CBCS.
As a result, the DGS ensures that depositors receive financial protection only through vetted and regulated banks, thereby enhancing the scheme’s reliability.
What Happens When a Bank Fails?
In the event of a bank failure, the DGS guarantees repayment of the insured deposit amount—up to 50,000 guilders per person per bank. The CBCS has committed to initiating these payments within 20 working days after officially declaring a failure.
This prompt response minimizes disruption, prevents panic, and ensures that customers can quickly regain access to essential funds.
The Deposit Guarantee Fund Foundation (DGF) will manage the financial resources behind the DGS. Participating institutions must contribute annually, with contributions based on the volume of guaranteed deposits each bank holds.
This structure ensures that larger institutions contribute more, thereby promoting fairness and sustainability. The CBCS will supervise both the fund’s health and each bank’s compliance.
Calculating Bank Contributions
The DGS determines contributions based on a risk-based approach. Banks holding more guaranteed deposits pay higher contributions. This model encourages institutions to manage deposits responsibly and rewards sound financial practices.
The CBCS will monitor the fund’s condition and make any necessary adjustments to rates or regulations, communicating changes through official channels.
Why the DGS Matters
This new scheme represents a landmark achievement in regional financial oversight. It aligns Curaçao’s banking standards with global best practices and offers both individuals and businesses greater peace of mind.
More importantly, the DGS incentivizes banks to maintain strong risk management. Tying their contributions to deposit levels ensures they remain accountable for their stability.
What’s Next for Sint Maarten?
Although Curaçao will launch the DGS this July, Sint Maarten is still preparing its version of the scheme. While authorities have not announced a specific rollout date, the CBCS has confirmed that planning is underway.
The implementation in Sint Maarten will follow a similar regulatory path, ensuring uniformity across the monetary union. In the meantime, officials urge banks and customers alike to prepare for the upcoming changes.
Public Awareness Is Essential
For the DGS to succeed, the CBCS will launch public information campaigns to help consumers understand their rights and the limits of coverage. Transparency and communication will be critical to avoid confusion or false expectations.
Additionally, financial institutions must inform their clients about the scheme. Customers should check whether their bank participates and determine how much of their money is covered under the new protections.
In Conclusion
The launch of the Deposit Guarantee Scheme in Curaçao marks a major step forward in protecting consumers and strengthening regional financial security. With deposit protection up to XCG 50,000 per account holder, the scheme provides a critical safety net.
Although Sint Maarten’s rollout remains pending, the region’s unified approach sends a strong message: financial authorities are committed to safeguarding depositors and ensuring long-term stability within the banking sector.