CBA targets the highest-risk areas in Aruba's financial sector

ORANJESTAD – The Central Bank of Aruba (CBA) continues to strengthen financial oversight by applying a risk-based supervisory approach that focuses its limited resources on institutions and areas with the greatest risks.

According to the 2025 Financial Sector Supervision Report, the framework has been in place since 2017 and is designed to address the root causes of problems rather than simply reacting to their consequences.

The CBA regularly evaluates banks, insurance companies, and pension funds based on their financial position, corporate governance, risk management, internal controls, regulatory compliance, and information technology (IT) risks.

The report identifies corporate governance, risk management, investment portfolio quality, internal controls, cybersecurity, solvency, liquidity, profitability, and loan portfolio quality as the sector's key risk areas.

Throughout 2025, the CBA carried out onsite inspections, reviewed regulatory reports, and held regular meetings with supervised institutions to ensure continued compliance and financial stability.

STRONGER FIGHT AGAINST FINANCIAL CRIME

The report also highlights the Central Bank's risk-based approach to preventing money laundering, terrorist financing, and proliferation financing.

Risk assessments consider both the inherent risks within each sector and how effectively institutions manage those risks through internal controls.

During 2025, the CBA conducted surveys among banks, credit unions, life insurers, pension funds, money transfer companies, insurance brokers, trust service providers, and notary offices. Based on those assessments, five targeted onsite inspections were carried out.

CYBERSECURITY RECEIVES GREATER ATTENTION

Cybercrime continues to rank among the fastest-growing threats facing financial institutions.

As a result, the CBA has expanded its IT supervision program to ensure institutions comply with regulations governing technology risk management, business continuity, and IT outsourcing.

The Central Bank says strengthening cybersecurity awareness and improving digital resilience remain key priorities for Aruba's financial sector.

CBA richt toezicht op grootste