Aruban
law is essentially similar to the
law of the Netherlands Antilles, from
which it separated only recently;
in turn, both jurisdictions draw their
law from Holland, and when there is
not specific local legislation, Dutch
law will apply.
Aruba Table of Statutes
This is a non-exhaustive list of the
main Aruban statutes affecting offshore
and non-resident business. The statutes
are listed in alphabetical order –
click on the statute for a fuller
description of the statute or the
legal regime it forms part of.
Central
Bank Ordinance 1985
The Commercial Code of Aruba
National Ordinance on Penalization
of Money Laundering 1996
National Ordinance on Profit Tax
The New
Fiscal Regime 2002
State Ordinance on Foreign Exchange
Transactions
State Ordinance on Supervision of
the Credit System 1998
The
Government of Aruba has issued several
decrees on money laundering that include
increased oversight of casinos and
insurance companies. The Government
of Aruba also is in the process of
instituting reporting requirements
for cross-border currency movements
in excess of 20,000 Aruban florins
(approximately US$11,200).
In
its 2007 annual report, the Central
Bank of Aruba (CBA) revealed that
proposals were being drawn up to strengthen
the supervisory ordinances for the
banking and insurance industries.
The CBA said that it intended to submit
final proposals before the end of
2008 (instead of the original target
date of mid-2008) to the Minister
of Finance and Economic Affairs for
his approval, after which the legislative
process can commence.
The
new target date was set mainly in
view of the follow-up OFC assessment
by the IMF. A legislative proposal
to bring stock exchanges under supervision
has been drafted, and the CBA said
that its supervisory scope may be
expanded to company services providers.
Depending on the outcome of the assessment,
additional amendments to these ordinances
may be proposed.
In
August 2006, the CBA issued a revised
policy rule for the admission and
licensing of banks and insurance companies.
Under this new policy rule, a foreign
bank or insurer is allowed to operate
via a branch office (or an agency
in the case of an insurer) only if
it is an international bank or insurer
with a balance sheet total of at least
USD10bn and an “A” rating
issued by Standard & Poor’s
or a comparable rating agency.
Foreign
banks or insurers that already operate
in the Aruban market via a branch
office or agency and did not meet
the aforementioned conditions were
required to establish a separate legal
entity in Aruba before 1st July, 2007,
through which they could continue
their banking or insurance activities
in this market. The deadline of 1st
July, 2007, was later extended to
31st December, 2007. However, despite
this extension, the Central Bank said
in its 2007 annual report noted that
none of the institutions concerned
had fully complied with the revised
policy rule. It is expected that all
companies will be able to complete
the whole process in the course of
2008.
Aruba Banking
Aruban
banks are supervised by the Central
Bank of Aruba under the State Ordinance
on Supervision of the Credit System,
1998, amended 1999.
During
the registration process, information
is required as follows:
-
The number, the names and the
past history of the persons who
determine the day-to-day policy
of the enterprise or institution;
- The
number, the names and the past
history of the members of the
supervisory board of the enterprise
or institution or of the body
of the enterprise or institution
having a task comparable with
that of a supervisory board;
- The
names of those who have a qualifying
holding in the enterprise or institution,
as well as the size of any such
qualifying holding;
- Annual
accounts or an opening balance
sheet which shall be provided
with an auditor's report, signed
by an auditor;
- A
programme of operations which
the enterprise or institution
intends to carry on;
- The
envisaged administrative organization
and management controls, including
the financial accounting system
and internal control;
- The
deed of incorporation of the enterprise
and institution.
The Bank may request the applicant
to furnish additional information
regarding the application for authorization
or the type of business to be pursued.
The Bank will decide on the application
within thirteen weeks of the date
of receipt of the application or any
subsequent information that is requested.
The Bank may refuse authorisation,
inter alia, if:
- The
Bank is of the opinion that the
expertise of one or more persons
who determine or codetermine the
policy of the enterprise or institution
is insufficient in connection
with the pursuit of the business
of a credit institution;
- On
the grounds of the intentions
or the past history of one or
more persons who determine or
codetermine the policy of the
enterprise or institution, the
Bank is of the opinion that the
interests of the creditors or
future creditors of the enterprise
or institution could be jeopardised;
- If
the Bank is of the opinion that,
as a result of a qualifying holding
in the enterprise or institution,
the sound banking policy of the
enterprise or institution is or
could be subject to an undesirable
influence;
- The
financial report is a report to
the effect other than that the
annual
accounts or opening balance sheet
give a true and fair view of the
financial position of the enterprise
or institution;
-
If the has reason to assume that
the enterprise or institution
has applied for authorisation
in order to evade regulations
pertaining to the supervision
of the credit system in another
country.
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