The CBA is the central foreign exchange bank for Aruba. As such, the CBA regulates payment transactions with abroad. The foreign exchange law and regulations have been put in place to support the monetary policy of Aruba.
In the State Ordinance Foreign Exchange Transactions (SOFET) (in Dutch Landsverordening deviezenverkeer) you will find the regulations concerning foreign exchange transactions. With regard to capital transactions, dividend- and profit payments, the CBA regulates it by granting foreign exchange licenses or declarations respectively. Based on the Decree concerning foreign exchange transactions 23/K.1 (in Dutch Besluit inzake het deviezenverkeer 23/K.1), the CBA has issued a general foreign exchange license to resident-natural persons and resident entities to execute foreign capital transactions. A natural person can execute foreign capital transactions up to six hundred thousand Aruban florins (Afl. 600,000) per calendar year or the equivalent thereof in foreign currency. A company can execute foreign capital transactions up to one million five hundred thousand Aruban florins (Afl. 1,500,000) per calendar year or the equivalent thereof in foreign currency.
Only for amounts above aforementioned thresholds residents have to apply for a foreign exchange license.
Also, for transfers to and from notified foreign accounts the CBA has issued a general foreign exchange license (in Dutch). To be able to make use of this general license, companies are required to report on a quarterly basis to the statistics department. If a company does not comply with the reporting requirements, it will have to apply for a special foreign exchange license (in Dutch) for each capital transaction.
Residents need a profit and dividend declaration (in Dutch) to receive or pay out profit or dividend.
If an entity wants to be classified as a non-resident, as determined in the SOFET, and does not take part of the Aruban economy, it can request for an exemption ex Article 19 of the SOFET.
Questions concerning foreign exchange licenses, profit and/or dividend declarations or exemptions ex Article 19 SOFET? Please send an email to legalservices@cbaruba.org.
