Financial Crime World

Aruba’s AML/CFT Regulatory Bodies Take Center Stage

Combating Money Laundering, Terrorist Financing, and Proliferation

Aruba’s efforts to combat money laundering, terrorist financing, and proliferation have been shaped by the 40 Recommendations published by the Financial Action Task Force (FATF). At the heart of this framework is the State Ordinance on Prevention and Combating Money Laundering and Terrorist Financing, which outlines key provisions for financial institutions and designated non-financial service providers.

Key Provisions

The ordinance requires:

  • Customer Due Diligence: Financial institutions must conduct thorough customer due diligence to ensure they know who their customers are.
  • Reporting of Unusual Transactions: Institutions must report any unusual or suspicious transactions to the authorities.
  • Record Keeping: Institutions must maintain accurate and detailed records of all transactions.
  • Supervision and Enforcement: The Central Bank of Aruba (CBA) is responsible for supervising and enforcing compliance with these requirements.

Designated Entities

The following entities are required to comply with the ordinance and register with the CBA:

• Lawyers • Notaries • Accountants • Jewelers • High-value dealers • Casinos • Investment brokers • Factoring companies • Leasing firms

AML/CFT Handbook

To guide compliance, the CBA has published an AML/CFT Handbook, a comprehensive resource that outlines:

  • Statutory requirements
  • Regulatory directives
  • Best practices for financial institutions and trust services businesses regulated by the CBA

The handbook provides clear guidance on how to detect and prevent money laundering and terrorist financing, as well as comply with statutory and regulatory requirements.

Conclusion

With this framework in place, Aruba is well-equipped to tackle the complex challenges of AML/CFT regulation and protect its financial system from illicit activities. The CBA’s commitment to transparency and effective implementation ensures that financial institutions and designated entities can operate confidently within a robust regulatory environment.