Aruba Takes a Stand Against Financial Terrorism: Effective Strategies for Combating Money Laundering and Terrorist Financing
As the global fight against financial terrorism intensifies, Aruba is taking proactive measures to safeguard its financial system from illicit activities.
A Robust Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) Framework
Aruba’s AML/CFT framework is modeled after the 40 Recommendations published by the Financial Action Task Force (FATF). At the heart of this strategy is the State Ordinance on Prevention and Combating Money Laundering and Terrorist Financing.
Key Provisions of the Ordinance
- Customer Due Diligence (CDD): Designated entities must perform thorough CDD to identify customers and verify their identities.
- Reporting of Unusual Transactions: Financial institutions and designated non-financial service providers are required to report suspicious transactions to the Central Bank of Aruba (CBA).
- Record Keeping: Institutions must maintain accurate records of all transactions, including customer information and financial data.
- Supervision and Enforcement: The CBA monitors compliance with AML/CFT regulations and takes swift action against those who engage in illicit activities.
Registration Process
Designated non-financial service providers are required to register with the CBA. This step enables authorities to monitor suspicious activities and take swift action against those who engage in illicit transactions.
Comprehensive Handbook for Financial and Trust Services Businesses
The Central Bank of Aruba has developed a comprehensive handbook that outlines statutory requirements, regulatory directives, and guidance notes to help institutions navigate the complex landscape of anti-money laundering and counter-terrorism financing regulations.
Robust Supervision and Enforcement Mechanisms
Aruba’s CBA works closely with other regulatory bodies and law enforcement agencies to identify and prosecute financial crimes. This ensures compliance with AML/CFT regulations and protects the integrity of the island’s financial system.
Conclusion
As a small island nation, Aruba is taking a proactive approach to combat financial terrorism, demonstrating its commitment to global anti-money laundering efforts. By implementing effective AML/CFT strategies, Aruba is safeguarding its financial system, preventing illicit activities, and promoting a safe and secure environment for businesses and individuals alike.