The Centrale Bank van Aruba (CBA) must submit a report each year to the Minister of Finance on the execution of the different supervisory state ordinances, including the ordinances in the areas of Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT). The CBA complies with this requirement via this yearly publication. Concurrently, this report informs all stakeholders of the main activities the CBA undertook during the year in the field of prudential and integrity supervision, the enforcement thereof, and the changes in the international and domestic regulatory and supervisory landscape. It also provides an analysis of the developments in the financial sector during the reporting year.
The Financial Sector Supervision Report 2017 Aruba covers, among other things, the following topics:
• Establishment of a framework for the implementation of risk-based supervision of credit institutions, insurance companies, and company pension funds;
• Increase of the minimum solvency requirement for the banking sector from 14 to 16 percent;
• Establishment of stricter liquidity requirements for the banking sector, including a gradual increase in the Prudential Liquidity Ratio (PLR) from 15 to 20 percent over a period of three (3) years;
• Expansion of the supervisory scope of the State Ordinance on the Supervision of Money Transfer Companies (AB 2003 no. 60) (SOSMTC) to include money exchange offices;
• Realization of a sharp increase in the number of AML/CFT onsite examinations;
• Strengthening of the AML/CFT riskbased approach, inter alia by targeted and themed onsite examinations (e.g., anticorruption and Panama Papers project);
Enforcement, Market Entry, and Legal Advisory
• Establishment of a separate Enforcement, Market Entry, and Legal Advisory Department;
• Strengthening of the policy rule on banking license and admission requirements for credit institutions;
State Ordinance on the Supervision of the Securities Business
As of January 1, 2017, the State Ordinance on the Supervision of the Securities Business (“Landsverordening toezicht effectenverkeer”) (AB 2016 no. 53) (SOSSB) went into effect. The SOSSB introduces licensing requirements and ongoing supervision on securities brokers, portfolio managers, collective investment schemes, and operators of a stock exchange.
State Ordinance on Consumer Credit
In 2015, the CBA started drafting a legislative proposal to regulate consumer credit. The final draft was submitted to the Minister of Finance and Government Organization in June 2016.
More detailed information can be found in the Financial Sector Supervision Report 2017 Aruba under the following button:
Total pages 68 • Language English • Country Aruba
Source: Centrale Bank Aruba
Tags: justice and law enforcement, tax administration, public finance & tax, tax, parlement aruba, statenlid aruba, aruba, ministerie van financien, minister of finance, government, centrale bank, central bank, central bank of aruba, monetary supervision, compliance, noncompliance.