The Netherlands Antilles and the island territories of which it consisted for years were confronted with substantial and structural problems with public finances. Budgets showed unreliable income and expenses figures, there was a backlog in the obligatory composing of financial statements and the review thereof by an external accountant and the debt position was problematic.
During referenda on all islands of the former Netherlands Antilles a majority of the inhabitants indicated that they wanted to put an end to the Netherlands Antilles as a state form. During the first Round Table Conference of November 2005 the start was made for a state reform, after which the Netherlands Antilles would cease to exist. Finally in October 2010 the state reform was concluded: Curaçao and Sint Maarten became autonomous countries in the Kingdom and the island territories of Bonaire, Sint Eustatius and Saba obtained a direct constitutional relationship with the Netherlands. It was agreed that the Netherlands would assist the new entities with creating a sound start position at the beginning of the new constitutional condition. For this reason the Netherlands declared to be prepared to reduce a great deal of the debt of the Netherlands Antilles and the island territories. The island territories had to implement structural improvements in the budget, specifically in the financial management, in order to avoid a situation whereby new debts that are too high are created in the future. In joint consultation the Netherlands, Curaçao and Sint Maarten agreed in a consensus Kingdom Act that independent supervision will take place on the finances of the new countries. At the introduction of Bonaire, Sint Eustatius and Saba to the Netherlands, it was agreed that supervision shall take place on the finances of these public entities, based on a Dutch law.
During the transitional period leading up to the new constitutional structure there was just one Board of financial supervision, which executed temporary financial supervision on the finances of Bonaire, Sint Eustatius and Saba on the one hand, and the Netherlands Antilles, Curacao and Sint Maarten on the other hand. This Board was assisted by a secretariat.
Since the state reform on October 10th, 2010, there are two Boards: the Cft Bonaire, Sint Eustatius and Saba and the Cft Curacao and Sint Maarten. The Legal base of the Cft BES is the Wet financiën openbare lichamen Bonaire, Sint Eustatius and Saba (Wet FinBES). The Cft Curaçao and Sint Maarten executes financial supervision as regulated in the concensus-Rijkswet financieel toezicht Curaçao and Sint Maarten (Rijkswet).
As per September 2nd, 2015, a third Board was instituted, being the Board of financial supervision Aruba. This Board has a different history. The financial situation in Aruba led on May 2nd, 2015 to the signing of a number of agreements between Aruba and the Netherlands, which resulted in the National Ordinance on Aruba temporary financial supervision (LAft). The LAft entered into force on September 2nd, 2015, with retroactive effect as of August 1st, 2015. With the introduction of the LAft the execution of the supervision of the public finances of Aruba was officially assigned to the Board of financial supervision Aruba (CAft). Until July 31st, 2015 the monitoring was carried out by the Cft based on the agreement of the Kingdom Council of Ministers (RMR) and on the basis of procedural arrangements which were subsequently made between the Cft and Aruba.
The three Boards of financial supervision are assisted by a common secretariat which has its offices on Curacao, Sint Maarten and Aruba.