Aruba Tightens Grip on Money Laundering and Terrorism Financing with Worldwide Compliance Framework
The government of Aruba has taken a significant step in combating money laundering and the financing of terrorism by implementing a comprehensive framework for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT). This framework, based on recommendations from the Financial Action Task Force (FATF), aims to prevent and detect financial crimes that threaten national security and economic stability.
Key Components of the AML/CFT Framework
1. State Ordinance for Prevention and Combating Money Laundering and Terrorist Financing
- Essential provisions related to customer due diligence
- Reporting unusual transactions to the Financial Intelligence Unit (FIU)
- Record keeping, supervision, and enforcement
2. Revised Handbook for Prevention and Detection of Money Laundering and Financing of Terrorism
- Detailed guidance for financial service providers and designated non-financial service providers on how to comply with AML/CFT regulations
- Provides clarity on compliance requirements for various industries and sectors
3. Subordinate Legislation
- State decrees regulating wire transfers
- Administrative enforcement principles
- Designated stock exchanges
- Introduction countries
- Verification documents
- Relevant indicator regulations
Additional Measures
- Regulation requiring financial institutions to identify and verify the ultimate beneficial owner of companies
International Cooperation
The implementation of this comprehensive framework demonstrates Aruba’s commitment to international cooperation in combating money laundering and terrorism financing. By adopting robust AML/CFT regulations, Aruba joins other nations worldwide in maintaining financial stability and preventing illicit activities that threaten global security.
Conclusion
Aruba’s AML/CFT framework is a significant step forward in the fight against financial crimes. The comprehensive approach to prevention, detection, and enforcement will help prevent money laundering and terrorism financing, ensuring a safer and more stable financial environment for all.