Aruba’s Financial Watchdog Issues Warning on Consequences of Non-Compliance
Central Bank of Aruba Emphasizes Importance of Compliance with Anti-Money Laundering and Combating Financing of Terrorism Requirements
As the financial sector in Aruba continues to evolve, the Central Bank of Aruba (CBA) has issued a stern warning regarding the consequences of non-compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) requirements. The CBA is responsible for overseeing designated non-financial service providers, including:
- Lawyers
- Civil notaries
- Tax advisors
- Accountants
- Jewelers
- High value dealers
- Casinos
- Investment brokers
- Factoring and leasing companies
Revised Handbook Highlights Regulatory Requirements for Compliance
The warning comes as a revised handbook for the prevention and detection of money laundering and financing of terrorism was issued by the CBA. The handbook applies to all financial service providers and designated non-financial service providers, and outlines the regulatory requirements for compliance with AML/CFT laws. The revisions include:
- A more risk-based approach
- Detailed guidelines on conducting business risk assessments
- Specific risk indicators per sector
Consequences of Non-Compliance Emphasized
The CBA emphasizes that failure to comply with these regulations can have severe consequences, including:
- Penalties
- Fines
- License revocation
A spokesperson for the CBA emphasized that supervised entities must register with the CBA and take notice of the Financial Action Task Force (FATF) and Caribbean Financial Action Task Force (CFATF) warning lists.
Additional Requirements Highlighted
In addition to the revised handbook, the CBA has reiterated its requirement for all financial service providers and designated non-financial service providers to have a money laundering compliance officer based in Aruba. The authority also warned that failure to comply with AML/CFT regulations can lead to:
- Reputational damage
- Loss of business opportunities
Importance of Compliance Emphasized
The warning comes as Aruba’s financial sector continues to grow, attracting new businesses and investment from around the world. However, the CBA is determined to ensure that these entities operate in a compliant and transparent manner.
“We will not tolerate non-compliance with AML/CFT regulations,” said the spokesperson. “It is essential for the integrity of our financial system and the reputation of Aruba as a financial hub.”