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LOCAL Friday 12 July 2019

The soundness and resilience of the financial sector in Aruba

remained unabatedly strong in 2018

Continued from Page 14 3. Revised directives on the publication working groups three and four. It also partici-
of the audited annual financial statements for pates in the other three working groups.
2. Revised policy rule on banking license credit institutions and insurance companies The finalization of the NRA is planned for Oc-
and admission requirements for credit institu- As of the reporting year 2019, based on the re- tober/November 2019, which will provide de-
tions vised directives on the publication of the au- tailed insight into the effectiveness of the cur-
As of January 1, 2018, a revised policy rule for li- dited financial statements of credit institutions rent AML/CFT framework, as well as the AML/
cense and admission requirements for credit in- and insurance companies, the credit institu- CFT risks Aruba is exposed to and identify the
stitutions operating in or from Aruba came into tions and insurance companies are required to additional measures necessary to reduce these
force. Under this revised policy rule, the CBA publish, among other things, their certified an- risks to acceptable levels.
only allows financial institutions with solid finan- nual reports on their websites. The revision is in
cial strength and reputation, subject to com- line with international standards on disclosure of To conclude, the strict and consistent enforce-
prehensive and effective consolidated supervi- financial information. ment of the supervisory and AML/CFT laws and
sion, to have a major shareholding in a financial regulations over the years has contributed to
institution established in Aruba. In October 2018, also in preparation for the al- maintaining a stable, reputable, and healthy
ready mentioned upcoming CFATF assessment financial system in Aruba. In addition, the CBA
If in the CBA’s opinion the condition of com- of Aruba, the AML/CFT National Risk Assess- works on an ongoing basis to uphold the high-
prehensive and effective consolidated super- ment (NRA) was started, with an intensive 3-day est international standards in the areas of finan-
vision by the home country supervisor is no workshop organized by the CBA for all relevant cial sector supervision and AML/CFT.
longer met, or if it has significant doubts about stakeholders. This important assessment is con-
the adequacy of the solvency of the parent ducted in close cooperation with the World However, in consideration of the upcoming
company, then the shares in the Aruban credit Bank and makes use of the tool developed by CFATF assessment in 202o, swift progress needs
institutions must be transferred to a (pure) hold- this institution. to be made in the legislative area for Aruba to
ing company. With this revision, the CBA aims to meet -to the largest extent possible- the 2012
prevent negative spill-over effects on the Aru- The NRA is divided into five different working FATF recommendations. No room exists for fur-
ban credit institutions. groups, dealing with the following five topics: (1) ther delay.
threats; (2) vulnerabilities; (3) banking; (4) other
Implementation of this revised policy rule is still financial institutions, and (5) Designated Non- The FINANCIAL SECTOR SUPERVISION REPORT
in the preliminary stages. Financial Businesses and Professions (DNFBPs). 2018 is available on the website of the CBA
The CBA is the project coordinator and chairs www.cbaruba.org as of today. q