Aruba’s AML/CFT Regulatory Bodies in the Spotlight: A Framework for Combating Money Laundering and Terrorist Financing

Introduction

Aruba has established a comprehensive framework to combat money laundering and terrorist financing, which is in line with the recommendations of the Financial Action Task Force (FATF). This framework consists of three key components: the AML/CFT State Ordinance, the AML/CFT Handbook, and related state decrees and regulations.

The AML/CFT Framework

AML/CFT State Ordinance

The AML/CFT State Ordinance is a crucial piece of legislation that sets out the legal framework for preventing and combating money laundering and terrorist financing. This ordinance contains provisions regarding:

Customer due diligence
Reporting unusual transactions to the Financial Intelligence Unit (FIU)
Record keeping
Supervision
Enforcement

All financial service providers and designated non-financial service providers are required to comply with these requirements.

AML/CFT Handbook

In addition to the AML/CFT State Ordinance, Aruba has revised its AML/CFT Handbook to provide further guidance on the prevention and detection of money laundering and terrorist financing. As of January 1, 2020, this handbook applies to all financial service providers and designated non-financial service providers.

Several state decrees and regulations have been enacted to supplement the AML/CFT State Ordinance. These include:

The State Decree on Wire Transfers
The State Decree on Administrative Enforcement of the AML/CFT State Ordinance
Regulations governing:
- Designated stock exchanges
- Introduction countries
- Verification documents
- Ultimate beneficial owners

Role of the Financial Intelligence Unit (FIU)

The FIU plays a critical role in Aruba’s AML/CFT framework. The FIU is responsible for:

Analyzing suspicious transactions
Providing intelligence to law enforcement agencies to combat money laundering and terrorist financing

Recognition by FATF

Aruba’s commitment to combating money laundering and terrorist financing has been recognized by the FATF, which has commended the country for its efforts to implement effective measures to prevent and detect these crimes. The Aruban government continues to work closely with international partners to stay ahead of emerging threats and ensure that its AML/CFT framework remains robust and effective.

Conclusion

In conclusion, Aruba’s AML/CFT regulatory bodies have implemented a comprehensive framework to combat money laundering and terrorist financing. This framework is based on the recommendations of the FATF and includes the AML/CFT State Ordinance, the AML/CFT Handbook, and related state decrees and regulations. The FIU plays a critical role in analyzing suspicious transactions and providing intelligence to law enforcement agencies. Aruba’s commitment to combating money laundering and terrorist financing has been recognized by the FATF, and the country continues to work closely with international partners to stay ahead of emerging threats.