Aruba’s Financial Institutions Gear Up with Revised Compliance Programs Amidst Money Laundering Concerns
In a move aimed at bolstering the island nation’s efforts against money laundering and terrorist financing, Aruba’s Central Bank of Aruba (CBA) has issued a revised handbook for financial institutions to adhere to stringent anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.
Revised Handbook Effective January 1, 2020
The updated Handbook for the Prevention and Detection of Money Laundering and Financing of Terrorism applies to all financial service providers and designated non-financial service providers in Aruba. The revised guidelines introduce a more risk-based approach to compliance, providing detailed instructions on conducting business risk assessments and addressing key concerns such as:
- Funds transfers
- Sanctions
- Terrorist financing
- Proliferation financing
Key Changes and Requirements
One of the notable changes is the requirement for financial institutions to have a dedicated money laundering compliance officer based in Aruba. Additionally, the handbook includes specific risk indicators for each sector, emphasizing the importance of:
- Sector-specific risk assessments
Reading the Revised Handbook
The CBA emphasized that the revised handbook should be read in conjunction with the official text of the AML/CFT State Ordinance, available only in Dutch. The updated guidelines supersede previous versions issued in 2011 and aim to ensure a uniform understanding among financial institutions of their compliance obligations under the AML/CFT State Ordinance.
Purpose of the Handbook
The CBA also clarified that the handbook is not intended as an internal manual for anti-money laundering procedures but rather a reference guide for financial institutions to comply with regulatory requirements.