Financial Crime World

International Cooperation Mechanisms Under Scrutiny in Aruba

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A recent report by the Caribbean Financial Action Task Force (CFATF) has raised concerns over the lack of consistent training for law enforcement agencies (LEAs) and prosecutors in relation to terrorist financing (TF) investigations and prosecutions in Aruba.

Weaknesses Identified in Aruba’s System

The CFATF report highlights several weaknesses in Aruba’s system, including:

  • Lack of Consistent Training: LEAs and prosecutors lack consistent training on TF investigations and prosecutions.
  • Slow Pace of Targeted Financial Sanctions: The implementation of targeted financial sanctions (TFS) has been slow and lacks guidance for reporting entities.
  • Technical Deficiencies in Law Governing Non-Profit Organizations: Aruba’s law governing non-profit organizations (NPOs) has technical deficiencies, hindering effective supervision and oversight.

Progress Made in Strengthening AML/CFT Framework

Despite these challenges, the report notes that Aruba’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework has been strengthened through:

  • Legislative Amendments: Legislative amendments have improved the country’s AML/CFT framework.
  • Effective Institutional Policies and Procedures: Development of effective institutional policies and procedures has enhanced the country’s AML/CFT framework.
  • Progress in Understanding Risk: Aruba has made progress in understanding risk, domestic cooperation, coordination, access to financial intelligence, and international cooperation.

Findings and Recommendations

The CFATF report provides a comprehensive assessment of Aruba’s efforts to combat money laundering (ML), terrorist financing (TF), and proliferation financing (PF) and identifies areas for improvement. The findings are expected to inform the development of targeted measures to strengthen the country’s AML/CFT framework and enhance its effectiveness in combating financial crimes.

Key Recommendations

  • Improve training for LEAs and prosecutors on TF investigations and prosecutions.
  • Enhance guidance for reporting entities on targeted financial sanctions (TFS).
  • Address technical deficiencies in Aruba’s law governing non-profit organizations (NPOs).

By addressing these weaknesses and implementing the recommendations, Aruba can strengthen its AML/CFT framework and enhance its effectiveness in combating financial crimes.