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Aruba: Offshore Business Sectors

Banking

This page was last updated on 22 Feb 2019.

The Central Bank of Aruba is responsible for supervision of the financial sector. Until the State Ordinance on the Supervision of the Credit System (AB 1998 no. 16) was enacted, the bank (itself created in 1986) considered it was not able 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 more on how to register a bank in Aruba. Offshore banks take the form of 'offshore' NVs (the local version of an LLC) and are only permitted to deal with non-residents or Aruban exempt corporations.

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

To make the banking sector more sound, the CBA further tightened its policy on admitting credit institutions in 2009. It added a major condition that only financial institutions with solid financial strength and reputation that are well supervised are allowed to be major shareholders in Aruban credit institution.

The minimum issued capital of an offshore bank is Afl5m. Withholding tax is not levied on interest-bearing deposits.

 

 

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