Financial Crime World

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ARUBA’S AML/CTF REGULATORY BODIES: WHAT YOU NEED TO KNOW

Aruba’s financial sector is subject to a robust Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulatory framework, overseen by several key authorities.

The Financial Intelligence Unit of Aruba (FIU Aruba)

FIU Aruba is an independent government agency established in 1996. As the primary AML/CFT supervisor in Aruba, its primary objective is to collect, analyze, and disseminate data to identify and prevent money laundering and terrorist financing. FIU Aruba’s work is guided by the Financial Action Task Force’s (FATF) 40 Recommendations to Combat Money Laundering, Terrorist Financing, and Proliferation.

Compliance Requirements

Financial and designated non-financial service providers in Aruba must comply with the State Ordinance for the Prevention and Combating of Money Laundering and Terrorist Financing (AML/CFT State Ordinance). To achieve this, they must adhere to strict requirements, including:

  • Conducting customer due diligence (CDD) or enhanced CDD when dealing with higher-risk clients
  • Reporting unusual transactions to FIU Aruba as soon as possible

Unusual Transaction Reports

A transaction is deemed unusual if it has been executed or planned in a way that suggests money laundering or terrorism financing. This can be detected through:

  • Objective measures, such as reporting suspicious activity to the police or ministry of justice
  • Subjective measures, including detecting potential links to terrorist organizations

Unusual transaction reports must include detailed information, such as:

  • The client’s identity document
  • The type and location of the transaction
  • The sum and source of funds used
  • Any circumstances that suggest the transaction is unusual

Thresholds for Reporting Transactions

Service providers are required to report transactions that meet specific thresholds, including:

  • Wire transfers exceeding 500,000 Aruban Florins (Afl)
  • Cash transactions exceeding 25,000 Afl
  • Casinos are subject to a lower threshold of 5,000 Afl

FATF’s Assessment

Despite its efforts, Aruba has been identified by FATF as having strategic AML/CFT deficiencies. As a result, the country remains on the organization’s list of countries with AML/CFT concerns.

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