BANKING SYSTEM OF ARUBA

Central Bank
The "Centrale Bank van Aruba" is a legal entity in itself (sui generis) with an autonomous position within Aruba’s public sector. It started its operations on January 1, 1986 and, at the same time, the Aruban Florin (Af) was brought into circulation, pegged to the US dollar at an exchange rate of Af 1.79 to US$ 1.00. This rate has remained unchanged since then.
The Central Bank is responsible for maintaining the internal and external value of the florin, as well as promoting the soundness and safeguarding the integrity of the financial system.
The banking sector consists of commercial banks, offshore banks, mortgage banks, credit unions and other bank-like institutions including finance companies and other financial institutions. The institutional investor’s sector comprises life insurance companies and pension funds.
At present, two offshore banks are registered in Aruba. These banks are allowed only to conduct transactions with non-residents. The Bank continues its strict admission policy for offshore banks. The most important requirements are that the parent bank is subject to comprehensive and consolidated supervision in the home country and that it possesses an excellent financial position and a solid reputation.

Foreign exchange transactions
The Central Bank administers the foreign exchange regulations, based on the State Ordinance on foreign exchange transactions. Merchandise import payments may be made freely and exports of goods and services do not require a license. Export proceeds must be generally converted into local currency within 8 working days or credited to an account with a local bank or a foreign bank, which is notified to the Bank.
In 1997, all foreign exchange limitations for payments to non-residents for purchases of services, were eliminated, such as the requirement for a special license for such transactions.
Effective July 1, 1998, no license is required for other capital payments made by local entities for an amount equivalent to a maximum of Af 500,000 per calendar year.
A foreign exchange tax of 1.3% is levied on payments made by residents to non-residents, except when settled in Netherlands Antillean guilders.

Aruban Investment Bank
The Aruban Investment Bank N.V. (AIB), incorporated in October 1987, is a private company. The objectives of the AIB are primarily to support medium and long-term investments in Aruba and to encourage economic development through the expansion of the private sector. In addition, the AIB is also developing international activities in the Caribbean Region.

Financial Institutions Operating
Aruba Bank N.V.
Caribbean Mercantile Bank N.V.
RBTT Bank Aruba N.V.
Citibank Aruba N.V.
OHRA Hypotheekbank N.V.
Fundacion Cas pa Comunidad Arubano
AIB Bank N.V.
Banco di Caribe N.V., Aruba Branch
Citibank N.A., Aruba Branch.