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Integrity Supervision - Pawn shops-compra y benta companies

Pawnshops / compra y benta companies

a. Admission policy/ Market entry

To be allowed to operate as a pawnshop, an exemption by the CBA is required within the meaning of Article 48 paragraph 3 of the State Ordinance on the Supervision of the Credit System (SOSCS). A written and motivated request must be submitted to the CBA for this purpose. The exemption may be granted if the interests protected by said  State Ordinance, are otherwise adequately safeguarded according to the CBA. Reference is made to the exemption policy of the CBA for more information based on Article 48, par. 3 SOSCS.

b. Law and regulations

The CBA supervises the pawnshops based on a dispensation policy for pawnshops operating in Aruba. This  because Article 48 of the State Ordinance on the Supervision of the Credit System (AB 1998 no. 16) prohibits the granting of credits or other forms of financing to the public in the course of a business. The pawnshops must comply with the requirements of the dispensation policy and the guidelines on the conduct of the business on an ongoing basis. 

The pawnshops must also comply with the State Ordinance for the Prevention and Combating Money Laundering and Terrorist Financing (AML/CFT State Ordinance) and the Handbook for the prevention and detection of money laundering and financing of terrorism for service providers (financial and designated non-financial) (AML/CFT Handbook) issued by the CBA. Furthermore, they must comply with the financial sanctions regulations and must, in this respect, take duly notice of the Financial Actions Task Force (FATF) and the Caribbean Financial Action Task Force (CFATF) warning lists, periodically circulated by the CBA.

c. Enforcement

In cases where the CBA identifies a situation of noncompliance with the applicable supervisory laws and regulations, formal or informal (a normative conversation or a written warning) measures are considered. The decision whether to apply formal or informal measures depends, among other things, on the seriousness of the case. Please refer to the CBA’s Enforcement policy for more information.

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