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Aruba: Offshore Business Sectors

Banking

The Central Bank of Aruba is responsible for supervision of the financial sector. Until the enactment of the State Ordinance on the Supervision of the Credit System (AB 1998 no. 16) the Bank (itself created in 1986) considered that it did not have the tools with which to regulate banks sufficiently closely. As a result, it has been extremely choosy about admitting banking operations, and there are only two offshore banks in Aruba. See Law of Offshore for information about the registration of a bank in Aruba.

Offshore banks take the form of 'offshore' NVs and are permitted to deal only with non-residents or with Aruban Exempt Corporations.

The Central Bank of Aruba (CBA) is encouraging the development of a larger financial sector, and will consider applications for licenses from financially sound and reputable banks who are subject to consolidated supervision in their home jurisdiction. A small number of new banking arrivals have taken place in the last few years.

However, to enhance the soundness of the banking sector, the CBA further tightened its policy rule on the admission of credit institutions in 2009. A major condition was added that only financial institutions with solid financial strength and reputation and subject to comprehensive consolidated supervision are allowed as a major shareholder in a credit institution established in Aruba.

The minimum issued capital of an offshore bank is Afl5m. No withholding taxes are levied on interest-bearing deposits.

 

 

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