Aruba: Regulatory Updates for Financial Institutions Bring Clarity on Licensing Requirements and Cross-Border Rules
The country manual for private banking in Aruba has undergone significant updates to ensure accuracy and compliance with an evolving regulatory framework. While there have been no substantial changes to the legal framework, local experts advise adapting approaches based on the evolving interpretation of regulations.
Clarification on Licensing Requirements
One notable development is the clarification on licensing requirements for foreign banks engaging in pre-contractual activities in or into/from Aruba. According to new guidelines:
- Reverse solicitation is recognized under Aruban Banking Law and Investment Services Law, allowing foreign banks to conduct pre-contractual activities upon client request, either during onsite visits or via remote communication.
Offering E-Banking Access
The manual also provides clarity on the offering of e-banking access to existing accounts. This activity is no longer deemed a new financial service requiring additional licensing. Provided that:
- The initial banking services were offered in compliance with Aruban cross-border rules, foreign banks will not be required to obtain additional licenses for this activity.
Business Relations with Third Parties
There have been no significant changes to the implications for business relations with third parties. Foreign banks continue to operate under existing guidelines.
Updated Manual and Resources
The updated manual has undergone a reformatting exercise, featuring:
- A new template
- Reworded answers to provide greater clarity and detailed explanations
- Regulatory summary and behavior template have also been updated to reflect the changes
To facilitate user navigation, BRP has created a BT Short Comparison document, allowing users to quickly identify modifications made compared to previous versions of the country manual. The comparison document is available on BRP’s platform by searching for “CM PB BT SHORT COMP” in the Document Field and “ARUBA” in the Target Country Field.
Purpose of the Updated Manual
The updated country manual aims to provide financial institutions with a clearer understanding of regulatory requirements in Aruba, enabling them to operate efficiently and compliantly within the jurisdiction.