Aruba Exits CFATF Third Round Follow-Up Process, Leads the Way to Fourth Round

In a significant development, the Caribbean Financial Action Task Force (CFATF) has removed Aruba from its third round follow-up process, citing the island nation’s significant progress in improving its anti-money laundering and combating the financing of terrorism (AML/CFT) regime.

Significant Progress Since 2009

Aruba completed a comprehensive overhaul of its AML/CFT system since 2009. This move comes after Aruba completed a joint CFATF and Financial Action Task Force (FATF) Mutual Evaluation Report, which highlighted Aruba’s low level of compliance with FATF Recommendations.

Strengthening the AML/CFT Framework

Since then, the government, financial sector, and other stakeholders have dedicated significant resources to strengthen Aruba’s AML/CFT framework. As a result, the FATF acknowledged in February 2014 that Aruba had made substantial progress in addressing its deficiencies, and thus can exit the regular follow-up process.

CFATF Decision

The CFATF’s decision was made public during the organization’s recent Plenary meeting in Miami, Florida. The meeting also saw several other member countries removed from the third round follow-up process or exit the CFATF International Cooperation Review Group (CFATF ICRG) monitoring process.

Inclusion in Fourth Round Evaluation

Aruba’s successful completion of the third round follow-up process paves the way for its inclusion in the FATF’s fourth round evaluation. The island nation is now considered to be largely compliant with the FATF Core and Key Recommendations, a significant achievement that reflects its commitment to combating money laundering and terrorist financing.

Protecting the Global Financial System

The CFATF’s efforts are aimed at protecting the global financial system from these threats, and Aruba’s progress serves as an example of effective cooperation between governments, financial institutions, and other stakeholders.